Editorial | Sensible compromise on stamp duties the right path for Hong Kong’s property market
- Changes announced in the policy address relaxed some curbs on home sales for the first time in more than a decade. A close eye needs to be kept on the changes so that the market can recover without overheating
Developers and market insiders wanted the government to rescind the decade-old stamp duties to lift property prices and boost sales. As announced in the latest policy address, the government was willing to meet them halfway.
That is a sensible compromise. Local property prices have fallen by nearly 15 per cent from a record high in September 2021 and may soon bottom out.
A soft landing is in sight. But the government should not pursue an overly stimulative policy to prop up the economy for short-term gains. Relaxing some long-standing “spicy” measures rather than scraping them in one go is the proper path.
In his latest blueprint for the city in the coming year, Chief Executive John Lee Ka-chiu said a special stamp duty, equivalent to 10 per cent of the home price, would be waived for owners reselling their property after two years.
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That is a reduction from the original three years. The buyers’ stamp duty that applies to non-permanent residents, and for additional properties, will also be halved to 7.5 per cent from 15 per cent.
Officials need to keep a close eye on market demands to gauge the effects of the latest changes. That is to strike a balance so the real estate market can recover without overheating.
