Hong Kong’s government has warned that their clamp-down on property speculation isn’t over yet, despite a recent April 1st hike in the tamp duty for property worth over $20 million Hong Kong dollars.
The stamp duty on flats valued at up to HK$20 million may be raised if the risk of an asset bubble is boosted by excessive speculation in the property market, Financial Secretary John Tsang warned yesterday.
Tsang said the government is committed to combating speculative activities, to reduce the risk of a property bubble. More than 13,000 cases of suspected speculation had been identified by the Inland Revenue Department in the fiscal year of 2008-09, with more than 4,000 requiring follow-up action after a review. The authorities will continue to actively track property transactions involving speculation and levy profits tax, he added.
Some brokers, perhaps predictably, believe fears are unfounded:
Hong Kong’s property market will see “no significant implications” from the government’s plans to curtail the risk of a bubble in the sector, Taifook Securities Group Ltd. said in a report.
“We see no significant implications for them from the new government requirements,” Mak wrote. “Property prices will in the longer-term be dictated by the strength of the economy and the levels of interest rates.”
The Hang Seng property index fell 1.6% compared to just a 0.3% drop for the Hang Seng.
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