Hong Kong raises stamp duty on second home purchases to 15% — even for locals

Authorities have raised taxes twice in two years to combat price escalation

New York /
Nov.November 05, 2016 12:00 PM

Hong Kong authorities will nearly double the stamp duty taxes on resident purchases of second homes in a bid to slow dramatic price growth, Mansion Global reported.

Starting Nov. 5, all buyers of second homes in Hong Kong will pay a 15 percent tax on individual and corporate purchases, Hong Kong’s chief executive Leung Chun-ying announced on Friday. The 15 percent tax already applied to all purchases by foreigners but will now also affect purchases by locals.

The tax hike is the second in just three years. The stamp duty for resident buyers was previously raised to 8.5 percent from 4.25 percent in 2013.

But the increase did little to cool overheating in the market. Median home prices were up 8.9 percent in the nine months ending in September, according to government data cited by Mansion Global.

The additional tax hike is most likely to curtail investment that’s been pouring in from China, Cliff Tse of JLL told the publication. [Mansion Global]Katherine Clarke


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Co-head of Goldman’s Europe Tavis Cannell with the Paris building (Google Maps, Goldman Sachs)
Goldman Sachs spends $119M on Paris office, retail building
Goldman Sachs spends $119M on Paris office, retail building
Amazon’s “smart” way into apartment buildings is through the landlord
Amazon’s “smart” way into apartment buildings is through the landlord
Amazon’s “smart” way into apartment buildings is through the landlord
The median price for an existing home in the Phoenix area reached $399,900 in June (Getty)
Home prices continue to soar in Phoenix
Home prices continue to soar in Phoenix
Michigan coach Jim Harbaugh lists Bay Area estate for $12M
Michigan coach Jim Harbaugh lists Bay Area estate for $12M
Michigan coach Jim Harbaugh lists Bay Area estate for $12M
Met Museum among art institutions to get “green” funding
Met Museum among art institutions to get “green” funding
Met Museum among art institutions to get “green” funding
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...