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Property stamp duty to rise to 15%

November 04, 2016

The stamp duty on property transactions will increase to 15%, applying to all residential property acquisitions by individuals or companies.

 

The new round of measures to cool property prices was announced today in a press conference held by Chief Executive CY Leung with Financial Secretary John Tsang and other officials.

 

The measures will be effective from tomorrow.

 

The new rate will replace the doubled ad valorem stamp duty (DSD) currently placed on residential property transactions.

 

First-time home buyers who are permanent residents will be exempted from the new rate.

 

Government data showed that local home prices rose for the sixth consecutive month in September, bringing accumulative growth of 8.9%, led by small and medium sized homes.

 

"In view of recent market performance, we believe this is the right time to do this," Mr Leung said.

 

"We believe this is a cooling measure on the private housing market in Hong Kong and this has been borne out by the number of DSD cases in recent months."

 

Mr Tsang said the Government needs to take action or else Hong Kong will face a higher risk of a property bubble, putting the economy and financial system in danger.

 

Secretary for Transport & Housing Prof Anthony Cheung called on the public to factor in affordability, market risks and residential property supply before buying a flat.

 

Secretary for Development Paul Chan said 28,000 private residential flats are expected to come on the market in 2017-18, adding the Government will continue to find land to meet demand.



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