15 per cent stamp duty | South China Morning Post
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  • Mar 28, 2015
  • Updated: 4:54am

15 per cent stamp duty

To rein in the city's runaway housing prices, Hong Kong's Financial Secretary John Tsang Chun-wah announced an additional 15 per cent stamp duty on non-permanent-resident and corporate buyers starting from October 27, 2012. The move prompted speculation over the effectiveness of taxation on the real estate market and criticisms that Hong Kong was turning away from its roots as a free market economy in favour of a more protectionist market environment.

 

Flat sales slump since new stamp duty

An estate agent marks down the asking price of a flat in Quarry Bay yesterday. Sales have slumped since cooling measures kicked in, despite owners cutting prices. Photo: Sam Tsang

Property sales slumped last week, despite an increasing number of owners cutting prices, following the introduction of new stamp duty.

Flat owners cut prices 3 to 5 per cent, but in some cases buyers demanded a 10 per cent discount.

Tuesday, 13 November, 2012, 4:22am 1 comment

Only way is up if you take the long-term view

Home prices in "world class cities" always rose in the long run.

Two weeks after the government announced new stamp duties in a bid to hose down overheated home prices, the talk of the town is still where prices are headed.

13 Nov 2012 - 9:01am

Fewer want to buy Hong Kong property after stamp duty, survey finds

Interest in buying property dropped to 19 per cent after Hong Kong launched a buyer stamp duty on non-permanent residents and companies, said a Citibank survey. Photo: Felix Wong

Hongkongers’ interest in buying property has dropped since the government launched market-cooling measures last month, according to a Citibank survey released on Monday.

Between August and October, 24 per cent of Hongkongers were interested in buying property, the bank’s poll found.

29 Aug 2013 - 4:13am

Naive Lam Fan-keung lost in the political woods

Naive Lam Fan-keung lost in the political woods

In his 20 years as a property analyst, Franklin Lam Fan-keung was known as a "super-bull" for his knack of producing spot-on assessments. But his judgment has been lacking recently in the china shop of politics.

12 Nov 2012 - 6:28am

The Week Explained: Unintended Consequences

Cooling the housing market heats up commercial speculation. Photo: AFP

At best the new government plan to cool housing prices has only a small chance of success. But for those of us at the battered end of the small and medium enterprise spectrum, it is not only a failure but one that is producing damaging effects.

This is because the iron rule of unintended consequences has already kicked in.

12 Nov 2012 - 2:31am

Cheung Kong's Justin Chiu says stamp duty unlikely to hit home prices

Justin Chiu, Cheung Kong (Holdings)

The city's new stamp duties are unlikely to hit Hong Kong home prices as residential property is still a good investment in the city's low-interest-rate environment, according to Cheung Kong (Holdings) executive director Justin Chiu Kwok-hung.

"The home market has probably been too hot in the past two to three months," Chiu said, adding that prices have risen faster than he expected.

10 Nov 2012 - 5:04am

Billionaire Henry Cheng warns new duty could rock normal property sales

Billionaire Henry Cheng Kar-shun has said the new stamp duty of 15 per cent imposed on non-permanent residents and people who use companies to buy property could affect normal transactions in the business sector.

9 Nov 2012 - 3:31am

Investors find ideal spot to park their money

One lot can generate returns of about 5 per cent. Photo: David Wong

If you have been wondering where to park your money, well, try parking spaces.

Since the government imposed the additional stamp duties to dampen property prices, parking spaces have become the most popular property investment in town as they are not covered by the new duties.

9 Nov 2012 - 3:59am

Home sales in secondary market plunge after cooling measures

Despite sales volumes falling, prices in the secondary market rose 1.9 per cent. Photo: AFP

Secondary-market home sales plunged to an 18-week low last week in the wake of fresh anti-speculative measures unveiled by the government on October 26.

7 Nov 2012 - 3:16am

Demand for Hong Kong retail space set to soar

Protest posters on display at a shop in the DNA Galleria in Tsim Sha Tsui.

A rising tide of liquidity and the government's latest measures to curb speculative home-buying could combine to drive demand up for retail property investment, say property agents.

7 Nov 2012 - 3:16am

Corrections and clarifications, November 7, 2012

The report, "Stamp duty good news for first-time buyers" on October 31 inaccurately paraphrased a remark by Paul Louie, head of regional property research for Asia at investment bank Nomura. It should have said he expected prices could fall by 3 per cent to 5 per cent in the next one to two months.

7 Nov 2012 - 3:16am

City could suffer from steep levy

If Hong Kong wants to close its doors to this market, then international business will have no option but to relocate to where that market is. Photo: EPA

Hong Kong has for many years traded on the idea that it is Asia's global city, a welcoming home and gateway for foreign business to work in China and Southeast Asia.

It is the equivalent of London for Europe, New York for North America and Dubai for the Middle East.

6 Nov 2012 - 2:25am

Corrections & Clarifications

The article on November 5 Business Post yesterday headlined "Flats tax dodge plan won't work: Lawyers" should have read "Flats tax dodge plan won't work: Accountants".

6 Nov 2012 - 4:48am

Scheme to dodge flats tax won't work, lawyers say

Lawyers agree that the idea of selling flats as shares in a company to avoid buyers duties is doomed for failure. Photo: Jonathan Wong

A developer's scheme to sell flats in the form of shares to help buyers escape stamp duty on property purchases will not work, tax experts say. The government recently announced that non-residents and buyers who use company names to buy flats will have to pay a stamp duty of 15 per cent of the purchase price of the flats.

5 Nov 2012 - 10:10am

New property tax a blow to the Hong Kong dream

New property tax a blow to the Hong Kong dream

We all know about the American dream. But let me tell you about a Hong Kong dream.

I have a friend. Let's just call him J.

5 Nov 2012 - 8:03am 10 comments