Home sales in secondary market plunge after cooling measures
Plunge follows government's introduction last month of fresh measures to curb speculation
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.
Data compiled by estate agency Ricacorp Properties shows that, in the 50 selected housing estates it monitors, 139 flats were sold in the week from October 29 to November 4, a drop of 40 per cent on the 229 homes sold the previous week.
"Zero transactions were recorded at eight housing estates," said Ricacorp director David Chan. They include the Tierra Verde and Villa Esplanada estates in Tsing Yi, and Fairview Park in Yuen Long.
On October 26, the government announced that non-residents and buyers who use company names to buy flats would have to pay a stamp duty of 15 per cent of the purchase price of the flats.
Effective on October 27, the extra tax came on top of increases also announced in the stamp duty payable on quick resales of flats, and the extension of that stamp duty to cover sales within three years, up from two years previously.
Nomura Equity Research said some initial reactions to the measures were emerging, citing Midland Realty's survey of 229 mainland buyers that showed that 62 per cent would not consider buying a flat in Hong Kong in the next six months.
