Effects of Eased Measures on the Hong Kong property Market
by: The Beat Asia
November 16, 2023
Hong Kong’s Chief Executive John Lee has highlighted the importance of allowing time for the property market and buyers to adapt to the recently introduced easing of property measures outlined in the Policy Address last month.
Since the announcement of the cooling measures, Lee has observed increased inquiries from interested buyers. This is particularly noticeable among individuals considered talented professionals who have arrived in Hong Kong under the city’s talent attraction schemes.
The government’s adjustments to demand-side management measures for residential properties include shortening the Special Stamp Duty payment period from three years to two years, reducing the Buyer’s Stamp Duty and the New Residential Stamp Duty rates from 15% to 7.5%, and suspending the stamp duty for property acquisition by incoming talent.
Lee emphasized that both the market and buyers need time to assess the situation and make informed decisions, given that purchasing property is a significant commitment for families. The government will continue to monitor the market while individuals consider their options.
Acknowledging the challenges faced by the property market in Hong Kong, including high interest rates that may persist, Lee stressed the importance of individuals making decisions based on their financial circumstances and abilities.
Transparency is a key aspect of the government’s policy, aiming to provide clear and accessible information to the public. The government aims to support decision-makers in evaluating whether to purchase property based on their specific situations.
Additionally, the government has been acquiring land to ensure an adequate supply for the market when the timing is deemed appropriate.
As the property market in Hong Kong adjusts to the eased measures, it is crucial to observe the effects and allow buyers to make well-informed decisions.
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