2024-05-17 28Hse Editor
(Leung Yuet-kam) Due to interest rate hikes, the Hong Kong residential property market has slowed, homebuyers have been hesitant to enter the market, and tax revenue has dropped significantly. The Inland Revenue Department announced yesterday that a total of 157 cases of the three types of residential property tax (including the 15% stamp duty on new residential properties, Buyer’s Stamp Duty, and Special Stamp Duty) were recorded in September, a month-on-month drop of about 21.9%, the lowest in eight months. Only 552 cases were recorded in the third quarter, down 24.9% from the second quarter’s 735 cases.
Fewer “spicy tax” cases than during the pandemic
Midland Realty chief analyst Buggle Lau noted that 339 cases of 15% stamp duty on new residential properties were recorded in the third quarter of this year, down 32.1% from the 499 cases in the second quarter. Furthermore, the number of cases dropped by 50% compared to the average of 680 cases after the outbreak, and by 87.3% compared to the average of 2,668 cases in the five years before the outbreak. Rising interest rates in Hong Kong have increased mortgage payments, while falling home prices have reduced buyers’ desire to invest in long-term rental investments.
Like
