About 40 flats bought by speculators at the new Yoho Midtown residential development in Yuen Long released at the weekend have been immediately advertised for sale on the secondary market at asking prices of up to 20 per cent more than the prices buyers had originally paid.
Agents said the buyers were mostly wealthy and experienced, and were seeking quick returns on investment funded by low interest rates.
The move has raised concerns that speculation seen in the luxury housing segment in recent months is now spreading to the mass market and will reinforce expectations that the government is poised to act against excessive property price rises.
In an effort to cool the overheated luxury flats market, Financial Secretary John Tsang Chun-wah is expected to announce in his policy address on Wednesday an increase in stamp duty on the sale of flats priced higher than HK$20 million to 4.5 per cent from 3.75 per cent.
While the move will have only a limited impact as such flats account for less than 2 per cent of the market's transaction volume, analysts say the government may also raise property supply by resuming regular land sales and releasing smaller land plots for bidding so that more developers can participate in the market and increase competition.
'The government has already subtly changed from a non-interfering stance to a more controlling mode, in view of the accelerated land releases in the last two months,' UOB Kay Hian analyst Sylvia Wong said in a report.
