New | Buyers abandon Hong Kong property contracts as stamp duty bites
Four transactions involving seven properties valued at a combined HK$55.4 million were abandoned
A growing number of Hong Kong’s property buyers have defaulted on their agreements and forfeited their deposits, as a November 5 increase in stamp duty shows effects.
Four transactions involving seven apartments valued at a combined HK$55.4 million had been cancelled, according to the government’s website.
“More contracts will be cancelled this week as buyers have decided to give up their deposits and walk away from the transactions in view of increasing market uncertainties,” said Sammy Po, chief executive at Midland Realty’s residential department.
The biggest of the abandoned transactions was a HK$30.6 million purchase of four Napa apartment units at So Kwun Wat in Tuen Mun by one buyer, who forfeited HK$1.5 million in down payment, according to the website.
Wheelock Properties, which closed the deal last week on Asia’s most expensive apartments, reported two defaults at its One Homantin project. One buyer signed the contract to buy Flat B on the 17th floor for HK$10.93 million, while another agreed to purchase Flat F on the 11th floor for HK$10.1 million. Both buyers didn’t proceed to complete their purchases, the website showed.
A buyer backed out of a HK$4.03 million purchase of Henderson Land Development’s Habour Park in Cheung Sha Wan, forfeiting on his HK$200,000 deposit.