Hong Kong to announce results of study on vacancy tax to cool property market, finance chief Paul Chan says
Measure will target developers who hoard empty flats even as government seeks to increase housing supply as economic uncertainties loom
The Hong Kong government is about to complete a study on imposing a vacancy tax on developers who hoard empty flats, Financial Secretary Paul Chan Mo-po said during a legislative meeting on Monday.
It is not clear when officials will reveal the research results.
“Hong Kong’s housing prices have largely exceeded affordability levels,” Chan said when questioned by a legislator on when the government would unveil such tax schemes. “We have been studying measures such as a vacancy tax on developers and will announce the results soon.”
The tax would apply only to developers and not affect owners in the secondary property market, the finance chief added.
About 9,000 flats were left vacant from December last year to March, “a significant figure” compared with the government’s goal of adding 18,000 flats to the housing supply per year, Chan said, citing numbers from the Transport and Housing Bureau.