Property prices may fall 20pc after curbs, agent Savills says
The prediction follows in the wake of a sharp drop in sales of commercial and residential properties since the government raised stamp duties payable on all commercial and non-residential properties sales effective from February 22.
A dire warning has come from global property consultancy Savills that property prices in Hong Kong may drop by up to 20 per cent across the board owing to latest anti-speculation measures taken by the government.
The prediction follows in the wake of a sharp drop in sales of commercial and residential properties since the government raised stamp duties payable on all commercial and non-residential properties sales effective from February 22.
Together with previously announced measures such as a Buyer's Stamp Duty, levies on sales of residential properties valued at more than HK$2 million were increased by as much as 23.5 per cent, and by 8.5 per cent on non-residential properties.
The fall in deal volumes and prices as well as big-ticket sales will continue at an even faster pace, Raymond Lee, chief executive of Savills, said. "Since the measures were introduced I do not believe we have seen any transactions valued at more than HK$100 million."
Lee cited the case of Opus, a luxury residential development built in 2012 by Swire Properties, as an example of the impact of the new measures. "The property is valued at more than HK$400 million. Under the new measures a buyer will need to pays taxes of HK$100 million. In such a situation who will still want to buy?"
In addition, property owners were under no pressure to sell, because their holding costs remain low, resulting in a "painfully quiet market", according to Lee.