Hong Kong tax only a breather for property bubble

Midland Holdings

07/11/2016 03:41

(The author is a Reuters Breakingviews columnist.  The opinions 
expressed are her own.) 
    By Robyn Mak 
    HONG KONG, Nov 7 (Reuters Breakingviews) - The territory 
nearly doubled stamp duty to 15 pct to cool surging prices. It's 
the toughest measure yet, but continued capital inflows from 
China will blunt the impact. Barring a big increase in supply, 
the world's least affordable housing market is likely to remain 
that way. 
 
    Full view will be published shortly. 
     
    CONTEXT NEWS 
    - The Hong Kong government on Nov. 4 said it would raise 
stamp duty on home purchases to a flat rate of 15 percent from a 
progressive rate of 1.5 percent to 8.5 percent, effective on 
Nov. 5. First time local home buyers are exempt from the change 
and will continue to pay stamp duty at significantly lower 
rates. 
    - This is the first time in three years that Hong Kong has 
raised stamp duties.   
    - Hong Kong home prices surged in September for the sixth 
consecutive month to hit the highest level in nearly a year, 
government data showed.  
    - Hong Kong property stocks fell on Nov. 7. The Hang Seng 
Property Index was down 4.4 percent by late morning Hong Kong 
time, while shares of Sun Hung Kai Properties, Henderson Land, 
New World Development, Cheung Kong Property and Midland were all 
down by over 6 percent.      
    - For previous columns by the author, Reuters customers can 
click on  MAK/    
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Hong Kong unveils fresh property curbs as Chinese buyers rush in 
     urn:newsml:reuters.com:*:nL4N1D53F0 
Graphic: Hong Kong house prices have been rising despite cooling 
measures    http://reut.rs/2f8hJoj 
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 (On Twitter https://twitter.com/mak_robyn Editing by Richard 
Beales and Katrina Hamlin) 
 ((robyn.mak@thomsonreuters.com;)(Reuters Messaging: 
robyn.mak.thomsonreuters.com@reuters.net)) 
 
Keywords: HONGKONG PROPERTY/MEASURES BREAKINGVIEWS