Hong Kong announces property tax for foreigners
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In the first nine months of the year Hong Kong's property market has rocketed 20 per cent Photo: REX FEATURES
Hong Kong has introduced a 15 per cent tax on foreign buyers in a bid to cool down its property market.
At the same time it has raised stamp duty for short-term speculators, as property prices overtake the record highs last seen back in 1997. In the first nine months of the year the former British colony’s property market has rocketed 20 per cent.
Hong Kong’s Financial Secretary John Tsang blamed low interest rates, easy credit and strong demand from rich Chinese buyers as the catalysts. He said: “Home prices have grown rapidly despite the economic slowdown. The risk of a property bubble is growing."
The 15 per cent rate, which applies to all non-Hong Kong permanent residents and companies, was introduced last weekend.
To curb short-term speculation, stamp duty will be imposed on a sliding scale. Those selling a property within six months of purchasing it will pay 20 per cent, falling to 15 per cent for those selling within one year.
