Tung Chee-hwa, ex-Hong Kong chief executive, becomes first-time homeowner at 84 with purchase of US$20.6 million luxury home
- Tung paid a stamp duty of 4.25 per cent which indicates he was a first time homebuyer
- Former chief executive comes from wealthy Hong Kong shipping family
“Tung bought the C2 unit of Grenville House in August this year. The government had rented the same unit during his stint as chief executive,” his spokesperson said on Tuesday. “After resigning as chief executive, he continued to rent the unit for his own use. He learnt in recent months that the vendor had intentions to sell his property, leading to his decision to purchase the unit at Grenville House,” the spokesperson added.
Homebuyers have to pay a flat stamp duty of 15 per cent of the property price in Hong Kong. For first time buyers, the duty rates are lower and are calculated based on the property price. The highest rate is 4.25 per cent – the tier that Tung’s unit falls under – for properties priced more than HK$21.7 million.
If he had bought the home under a company name, Tung would have been required to pay a stamp duty of 15 per cent, or HK$24 million. By buying it in his own name, he has saved Hk$17.2 million.
The 84-year-old had been renting the 3,335 sq ft unit on Magazine Gap Road for more than a decade. Its price translates to HK$47,976 per square foot. The property comes with a car park.