Hong Kong Hikes Stamp Duty On Luxury Properties

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Wednesday, Hong Kong's Financial Secretary John Tsang in his budget speech announced new measures to prevent volatility in the property market.

To curb speculation and reduce the risk of asset bubbles, Tsang said a higher rate of stamp duty would apply on properties valued at more than HK$20 million from April 1. Stamp duty on such transactions will rise to 4.25% from 3.75%. If there is excessive speculation in the trading of properties valued below HK$20 million, the government will consider extending the measures to those transactions also.

The government will strive to prevent an excessive expansion of mortgage lending that might fuel an asset price bubble, added Tsang. "The measures announced strike a balance between reducing the risk of a property bubble and preventing public policies from causing unnecessary fluctuations in the property market."

Tsang said Hong Kong's economy expanded 2.6% in the fourth quarter of 2009. He forecasts GDP growth of 4% to 5% for 2010. He also forecasts mild inflation of 2.3% in 2010.

Wednesday, Hong Kong's Financial Secretary John Tsang in his budget speech announced new measures to prevent volatility in the property market. (Market News Provided by RTTNews)