Hong Kong property demand aided by stamp duty cuts, but stocks and interest rates are key
Hong Kong's residential property market is showing signs of improvement following the government's decision to lower the stamp duty for small flats, but market experts believe a buoyant stock market has played a greater role in boosting market confidence and that interest rate trends remain crucial.
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The Hong Kong government reduced the stamp duty on the sale of flats worth up to HK$4 million (US$515,000) to just HK$100, down from HK$60,000, Financial Secretary Paul Chan Mo-po announced in his
budget address on February 26. The previous threshold was for homes worth up to HK$3 million.
'The new policy did help to improve the residential market as the sell-through rate of those small flats in recent new launches in the first-hand market was good,' said Buggle Lau Ka-fai, chief analyst at Midland. 'But it may not be the main reason for the uptick in transactions.'
Centaline Mortgages said as of March 20, transactions of flats between HK$3 million to HK$4 million increased by 1.9 times over the same period in February this year and up 3.5 times year on year.
Financial Secretary Paul Chan Mo-po, at the Hong Kong Coalition of Professional Services lunch at New World Harbour View in Wan Chai on March 11. Photo: Jonathan Wong
Hong Kong has seen strong weekend sales over the past three weeks. Last Saturday, 228 available flats at the new Tai Po residential project developed by Vanke Hong Kong were sold. Sun Hung Kai Properties' Yoho West Parkside development in Tin Shui Wai also saw batches of units quickly snatched up by buyers.
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