Hong Kong gives first-home buyers a leg-up with trims to ad valorem stamp duty
- Adjustments aimed at ‘easing the burden on ordinary families of purchasing their first residential properties’, Paul Chan says
- Measure effective immediately, will benefit 37,000 buyers and cost the government around HK$1.9 billion a year
“Last year, more than 90 per cent of buyers of residential properties were first-time buyers,” Finance Secretary Paul Chan Mo-po said in his budget announcement on Wednesday. “Having considered that no adjustments have been made to the value bands of the ad valorem stamp duty payable for the sale and purchase or transfer of residential and non‑residential properties since 2010, I have decided to make adjustments in this regard, with a view to easing the burden on ordinary families of purchasing their first residential properties, particularly small and medium residential unit.”
The ad valorem stamp duty will now be HK$100 (US$12.8) for homes worth up to HK$3 million, instead of HK$2 million previously, among other cuts. The changes apply to homes worth HK$10 million or below, with the difference up to HK$67,500 for properties worth HK$9 million ones, according to StarPro Agency.
“We expect this should help reduce the burden of buyers of private properties priced at about HK$4 million to HK$6 million, which is the prevailing price for many first private homes,” said Raymond Cheng, managing director of CGS-CIMB Securities.