Exclusive | HK$350 levy proposed on every property transaction to fund new management watchdog
New tax awaiting approval from Legco’s Finance Committee, when it reconvenes in October
Tens of thousands of Hong Kong property buyers face an extra HK$350 (US$19) levy on top of existing stamp duties, for every deal signed, starting from next year.
Tony Tse, chairman of the fledgling Property Management Services Authority (PMSA), revealed the proposed new tax this week, to be used to help fund the authority’s running. It would apply to purchases of all types of property, from shops and offices to homes and car parks.
It is awaiting approval from Legco’s Finance Committee, when it reconvenes in October.
The body’s job will be to regulate the property management industry by issuing reputable companies with licenses. Assuming there are 80,000 registered property transactions per year, the proposed HK$350 levy could generate HK$28 million annually.

In the first eight months of this year, 54,452 transactions worth HK$462.8 billion (US$54.6 billion) have been completed, data from the Land Registry shows. Last year there were 73,004 individual transactions, down 4 per cent from 76,159 in 2015, and total transaction values fell 4.5 per cent to HK$532.8 billion.
