Proposed easing of stamp duty isn’t helping sales, property agencies say
Agents say they are mired in the darkest days of the market correction and that the new government measures are not boosting transactions
While developers and buyers wishing to upgrade their homes are likely to benefit from the government's proposed relaxation last week of the rules on the double stamp duty, property agents are singing the blues.
They say these are the darkest days of the market correction so far, as sales of new homes slump to a 12-month low.
Their income from commissions has fallen as developers hold back on the launches of new projects and homeowners offer less room for negotiation after the proposed easing of stamp duty on some transactions.
"Only 176 new units have been sold so far this month. It is the lowest since about 80 deals were recorded in June, after the new rules regulating the sale of new projects took effect on April 29 last year," said Louis Chan Wing-kit, managing director for home sales at Centaline.
Assuming a supply of 15,000 new flats a year, Chan said, the average number of transactions per month should be 1,250. He said a quarter of Centaline's 320 branches have sunk into the red so far this month, though the company broke even.
Chan said the firm would not rule out the possibility of laying off staff to cut costs.
Now, buyers of a new flat can get a refund of the extra stamp duty if they sell their existing flat within six months of signing a temporary contract for the purchase.