Hong Kong stamp duties hit HK$3b in June, highest in 7 months
The 7-month high in revenue from stamp duties indicate no sign of residential property investment slowing, despite government controls to curb soaring prices
Investments at home and from abroad for Hong Kong homes have showed no sign of slowing as the government’s revenue from extra stamp duty – aimed to cool the property market – rose to a seven-month high of HK$3 billion (US$384 million) in June, according to official data.
The Inland Revenue Department announced on Tuesday that income from buyers’ stamp duty (BSD) and double stamp duty (DSD) amounted to HK$2.98 billion last month.
Among them, tax revenue from DSD surged 37 per cent to HK$2.22 billion in June, compared with HK$1.62 billion in May.
Revenue from BSD jumped 60 per cent to HK$736 million in June, the highest since April, according to the data.
To curb speculation, the government introduced in February 2013, a double stamp duty of as much as 8.5 per cent for buyers of second homes or for purchases through a company.
In November 2016, the government raised the DSD to 15 per cent for all residential purchases, except for first-time buyers, as part of its efforts to dampen soaring home prices.
However, the June data will not reflect the last increase in DSD as the new rule is still awaiting for the Legislative Council’s approval.
The IRD will track down the buyers liable to pay under the new policy once the rule obtained the green light from lawmakers.
A likely case in point: a corporate buyer is set to pay the highest stamp duty ever on a property in Hong Kong, after forking out HK$1.08 billion for Asia’s most expensive house per square foot in January.
The buyer, named as Giant Victory Holdings in a filing with the Land Registry, is likely to be charged a total of 30 per cent in stamp duty for the luxury home on the Peak, which works out to be HK$324 million.
The figure dwarfs the previous record of HK$90.54 million tax charged to another corporate buyer who bought a semi-detached home in Happy Valley in mid-November last year.
Giant Victory paid HK$108,543 per sq ft for the 9,950 sq ft House No. 1 at 8 Mount Nicholson Road, a joint venture project developed by Wheelock & Co and Nan Fung Development.
The house was sold through tender on Christmas day, ranking as Asia’s most expensive house.
In 2012, the government also imposed an extra 15 per cent buyers’ stamp duty on non-local residents.