Please enter your username and password here:Forgot Password?
Please enter your details here:or Login
By ExpatBriefing.com Editorial
09 January, 2014
The increased cost of property transactions in Hong Kong, after the hike in stamp duties introduced by the Government early last year, appears to have succeeded in cooling the real estate market by significantly reducing the number of property purchases.
The number of sale and purchase agreements for all building units received for registration for 2013 was 70,503, down by 39 percent compared with 2012 and by 35.2 percent compared with 2011. The total consideration for these agreements for 2013 was almost HKD456.3bn (USD58.9bn), a reduction of 30.2 percent compared with 2012 and 22.4 percent compared with 2011.
While Hong Kong's property prices are still reported to have grown in 2013, the rise of less than 3 percent is a marked slowdown. With prices now predicted to decline in 2014, particularly for luxury residential properties, the Government appears to have been successful in the further measures it took in February last year to address what was then an overheated property market.
By the beginning of last year, the Buyer's Stamp Duty and the increased Special Stamp Duty introduced in October 2012 had gone some way in driving down demand from those who were not Hong Kong permanent residents (HKPRs), but property market prices continued to rise.
The Government therefore decided, with effect from February 23, 2013, to increase the cost of property transactions generally by doubling the rates of existing ad valorem stamp duty applicable to both residential and non-residential properties, while stamp duty for transactions of HKD2m or below rose from a HKD100 flat fee to 1.5 percent of the transaction's value.
However, the new stamp duty rates do not apply to HKPR buyers who are not beneficial owners of any other residential property in Hong Kong at the time of acquisition of a residential property.A comprehensive report in our Intelligence Report series dealing with the issues raised by international property investment, and the possible taxation implications raised by such purchases, with an account of the likely (and some less obvious) potential countries for your consideration, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report15.asp
Tags: Tax | Investment | Real-estate Investment | Real-estate | Stamp Duty | Hong Kong | Expats | Investment | Property Investment | Invest | Investment
About | Useful Links | Global Media Partners | Media | Advertising And Sales | Banners And Widgets | Glossary | RSS | Privacy & Cookies | Terms And Conditions | Editorial Policy | Refer To A Friend | Newsletters | Contact | Site Map
Important Notice: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. © Wolters Kluwer TAA Ltd 2016. All rights reserved.
The Expat Briefing brand is owned and operated by Wolters Kluwer TAA Limited.