Anthony Cheung Bing-leung, Hong Kong’s Secretary for Transport and Housing, has disclosed that the Government will next month present the findings of a review into the impact of stamp duty measures to the Legislative Council’s Panel on Housing.
In addition to the increased Special Stamp Duty (SSD) rate (from 10 percent to 20 percent on properties held for less than 36 months) and the 15 percent Buyer’s Stamp Duty (BSD) on purchases of residential properties that were introduced in 2012, the Government also doubled, in February 2013, the rates of the existing ad valorem stamp duty (AVD) applicable to both residential and non-residential properties.
These measures, Cheung said, “aim to combat speculative activities, ensure healthy and stable development of the property market, and accord priority to the home ownership needs of Hong Kong permanent residents in the midst of the present tight housing supply.”
He stated that the increase in property prices was moderated after the introduction of the doubled AVD in February 2013, with price rises, between the period March 2013 to April 2014, of just 0.1 percent on average. However, he noted that prices in Hong Kong have gradually picked up again since that date. Overall property prices rose by 13 percent in 2014.
Cheung pointed out that if demand-side management measures had not been introduced at the end of 2012 and early 2013, real estate prices “might have been even more exuberant, affecting our economic and financial stability.” He said “the Government closely monitors developments, and will continue to adopt necessary measures to stabilize the property market.”
Monitoring is being carried out “with reference to a series of indicators, including property prices, home purchase affordability, transaction volume, the supply of residential properties, as well as changes in the local and external economic situations,” he said.
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