Property selling despite curbs, agents say

The Hong Kong government's new cooling measures may curb short-term property speculation in the medium to lower end of the market, but its effect on luxury homes could be limited, agents say.

A day after the authorities, taking aim at 'flippers', announced an additional stamp duty of up to 15 per cent on property transactions and cut the amount banks can lend to property buyers, a new luxury residential project in Mid-Levels recorded better-than-expected results.

The first day of sales at Azura, a Swire Properties project, offered 79 flats priced between HK$30.4 million and HK$58.8 million. At the end of the day, more than 20 flats had sold. Agents said the result was better than expected and showed the impact of the new austerity measures might not be as severe as feared.

'It's really not bad in light of the prices of these units,' said Eric Cheung, director of Ricacorp Properties. He said the government measures mainly targeted speculative trading, and there was still strong demand from end users.

Simpson Lo, associate director for western Mid-Levels at Centaline Property, said that buyers of luxury properties worth tens of millions of HK dollars were mostly long-term investors. The new measures, on the other hand, mainly target short-term speculators - those who 'flip' properties for quick gains. And these people primarily focus on properties at the lower end of the market. 'Sharply raising the stamp duty on the properties that change hands within a year will dampen speculative activities,' Lo said. 'But it will affect flats worth below HK$3 million more than those worth above HK$30 million.'

He said that those who bought luxury flats tended to hold onto their properties for longer.