HK’s tax on unsold property makes a “sitting duck” out of luxury developers

“It is rather unfair for high-end luxury properties.”

TRD New York TRD WEEKEND EDITION /
Aug.August 05, 2018 03:00 PM

(Credit: Estial, Pixabay, Max Pixel)

In an effort to add supply to Hong Kong’s tight housing market, the government has imposed a tax on developers holding unsold properties for more than six months.

Luxury developers are calling foul play, according to Bloomberg, saying the tax burden disproportionately hits them, as they claim it takes longer to find buyers ready to spend serious money.

“We are in a sense, a sitting duck,” chairman of Hang Lung Properties Ltd. Ronnie Chan told Bloomberg. One of Chan’s projects, Blue Pool Road, has 18 houses listed for more than $25 million. Since the properties went on the market in 2016, only 6 have been sold.

“If there had been 18 buyers in the past three years I would have sold all of them,” Chan added.

But Bloomberg Intelligence property analyst Patrick Wong disagreed with Chan’s assessment that a shortage of buyers was the issue: “Developers of ultra luxury properties hold onto them as long as possible. They keep them until they find a buyer offering a really high price.” [Bloomberg]


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
WeWork CEO Sandeep Mathrani (Getty)

WeWork sells majority stake in China division

WeWork sells majority stake in China division
United Wholesale Mortgage Mat Ishbia and Gores Holdings IV CEO Alec Gores (Photos via United Wholesale Mortgage and Gores)

United Wholesale Mortgage goes public with $16B valuation

United Wholesale Mortgage goes public with $16B valuation
Newly uncovered trademarks show Trump’s Cuba real estate aspirations

Newly uncovered trademarks show Trump’s Cuba real estate aspirations

Newly uncovered trademarks show Trump’s Cuba real estate aspirations
Hong Kong Stock Exchange (Getty)

Chinese proptech firm Ming Yuan Cloud goes public

Chinese proptech firm Ming Yuan Cloud goes public
Nightingale’s Eli Schwartz and 111 Wall Street (Credit: Google Maps)

Nightingale, Wafra seek $860M to redevelop 111 Wall Street

Nightingale, Wafra seek $860M to redevelop 111 Wall Street
(iStock)

Banks see CRE loans delinquencies hit 5-year high

Banks see CRE loans delinquencies hit 5-year high
arrow_forward_ios

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

Loading...