“After the relief, there isn’t a signal that it has affected Hongkongers’ [affordability] in properties,” he stated. “Scrapping all the additional stamp duties can add vitality to the actual property market and launch the buying energy of residents.”
In his annual coverage handle that month, Chief Govt John Lee Ka-chiu introduced the rollback of some property cooling measures in a bid to “alleviate the monetary burden” on residents.
Modifications included guaranteeing consumers solely wanted to pay stamp responsibility in the event that they offered their residential property inside 24 months, as an alternative of the earlier threshold of 36 months.
The coverage change additionally halved the stamp responsibility paid by non-first-time consumers, non-locals or firms initially from the earlier fee of as much as 30 per cent.
Over the previous 4 months, the variety of personal residential property transactions soared by 64 per cent, from 2,123 in October to three,477 final month.
The federal government’s lived-in dwelling worth index additionally fell about 3 per cent from 322.6 in October to 312.1 in December.
The Enterprise and Professionals Alliance for Hong Kong political occasion, which holds 9 Legco seats, additionally joined requires cooling measures to be axed.
Jeffrey Lam Kin-fung, a celebration vice-chairman and a lawmaker for the commerce sector, argued that slicing the curbs would assist relatively than hinder authorities income streams.
Drop Hong Kong property cooling measures, pro-business teams urge finance chief
Drop Hong Kong property cooling measures, pro-business teams urge finance chief
Lam, who can also be a member of prime political advisory physique the Govt Council, stated that additional slashing stamp duties may set off a rebound for the sector and result in spillover results for different financial sectors, permitting the federal government to profit from elevated tax and land sale incomes.
Native authorities count on to document a deficit of greater than HK$100 billion (US$12.8 billion) forward of the brand new monetary yr, citing the sluggish restoration of the post-pandemic economic system and lowered income from land gross sales and stamp responsibility.
The New Folks’s Social gathering additionally echoed calls to finance chief Chan to ease measures, whereas the Liberal Social gathering prompt any such plan needs to be “gradual”.
Representatives from all 4 events have individually met Chan as he gathers views from lawmakers forward of his price range speech.
Economist Andy Kwan Cheuk-chiu, director of the ACE Centre for Enterprise and Financial Analysis, agreed that rolling again cooling measures would profit the property market.
“Eradicating these measures may assist rein in the actual property stoop by stimulating extra transactions, thus restoring buyers’ confidence and easing the downward stress on the economic system,” he stated.
Kwan stated lifting such curbs would have little affect on authorities income because the transfer would produce extra earnings from a rise in property transactions, sufficient to make up for the lack of punitive stamp duties.
Professor Chau Kwong-wing, chair professor and director of the Ronald Coase Centre for Property Rights Analysis on the College of Hong Kong, stated he believed property costs wouldn’t soar beneath the proposed shake-up, given the town’s underperforming economic system and excessive rate of interest.
The federal government ought to make extra room for the market to self-adjust, whereas keeping track of demand from non-local consumers, he added.
“The federal government must impose further stamp duties on them if vital, particularly when the property costs soar and there is a rise of international capital,” Chau stated. “In the long run, housing is a livelihood subject as an alternative of an financial one.”
Take away property curbs as folks’s ‘belongings are disappearing’: Midland chief
Take away property curbs as folks’s ‘belongings are disappearing’: Midland chief
Gary Ng Cheuk-yan, a senior economist at Natixis Company and Funding Financial institution, prompt a gradual and partial easing of property stamp duties to make sure a secure housing market.
He stated he believed that lowering property stamp duties may solely forestall the market from falling additional, whereas serving to to stimulate some transactions.
“The prospect of a market rebound will enormously rely on whether or not there shall be reductions of the rate of interest and the extent of investor confidence,” Ng stated.
