The Financial Secretary of Hong Kong, John Tsang, announced today in a budget address that the tax on luxury properties would be hiked 1% due to concerns of a property bubble in the city.
From April 1, the levy on transactions of properties valued at more than 20 million Hong Kong dollars ($2.58 million) will be raised to 4.25%, up from its current level of 3.75%. In addition, buyers will no longer be allowed to defer payment of the levy. Tsang said the government will consider extending the same measures to lower-priced properties if it finds “excessive speculation.”
They can prick, but it doesn’t necessarily mean property prices will pop.