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Hong Kong stamp duty
OpinionLetters

Letters to the Editor, December 1, 2012

The Real Estate Developers Association (REDA) showed its true colours when it wrote to the government asking for so-called luxury flats of more than HK$30 million to be exempt from the new stamp duty ("Developers want luxury flats to be exempt from tax", November 24).

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The Real Estate Developers Association (REDA) showed its true colours when it wrote to the government asking for so-called luxury flats of more than HK$30 million to be exempt from the new stamp duty ("Developers want luxury flats to be exempt from tax", November 24).

The property tycoons have lost touch with reality, and their sense of entitlement to special and privileged consideration is plainly out of step with the Hong Kong community. This powerful group has long ignored the housing needs of ordinary residents in its quest for outrageous levels of profit. Its interest is to supply investment vehicles rather than homes. Every project becomes a fancily hyped "luxury" scheme regardless of the location, and is priced far out of the reach of most citizens.

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Little wonder that Stewart Leung Chi-kin, chairman of the REDA's executive committee, is concerned about a tax on offshore buyers, as they are the REDA's prime target. Overseas investors' lack of local knowledge makes them easy prey. The REDA's concern at damage to Hong Kong's reputation as a free market holds little water, as the property industry is controlled by a handful of powerful conglomerates which in the past 15 years have turned Hong Kong business into cosy cartels.

Hongkongers have been held to ransom by this small group of businessmen for too long, and it was dreadful that the lands policy of Donald Tsang Yam-kuen's administration facilitated the tycoons' bubble-blowing price escalation.

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New chief executive Leung Chun-ying is to be congratulated for trying to get to grips with the problem of supplying enough homes for Hong Kong citizens. In such a rich city, it is appalling that so many have to resort to cage homes and coffin-sized bed spaces.

K. Y. Leung, Shouson Hill

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