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Hong Kong stamp duty

To rein in the city's runaway housing prices, Hong Kong's Financial Secretary John Tsang Chun-wah announced an additional 15 per cent stamp duty on non-permanent-resident and corporate buyers starting from October 27, 2012. The move prompted speculation over the effectiveness of taxation on the real estate market and criticisms that Hong Kong was turning away from its roots as a free market economy in favour of a more protectionist market environment.

 

An estate agent marks down the asking price of a flat in Quarry Bay yesterday. Sales have slumped since cooling measures kicked in, despite owners cutting prices. Photo: Sam Tsang

Flat sales slump since new stamp duty

Property sales slumped last week, despite an increasing number of owners cutting prices, following the introduction of new stamp duty.

Flat owners cut prices 3 to 5 per cent, but in some cases buyers demanded a 10 per cent discount.