Hong Kong says it has held no discussions on relaxing property stamp duty (updated)

Sun Hung Kai Properties

09/08/2022 07:07

(Recasts with government statement, adds Ip comment to
Commercial Radio, updates shares)
    HONG KONG, Aug 9 (Reuters) - Hong Kong's government said on
Tuesday it had no plans to relax its stamp duty on property,
responding to media reports that it could consider waiving the
extra stamp duty that mainland Chinese have to pay to buy
property in the city.
    "(The government) clearly states that there are no relevant
plans," a spokesman for the Financial Secretary's Office said in
a statement.
    Shares of Hong Kong property developers fell back from highs
 after government's clarification. New World Development Co
 0017.HK  was still up 2.5%, but had risen by as much at  6% in
the morning. 
    Sun Hung Kai Properties  0016.HK  was up 2%, while CK Asset
Holdings  1113.HK  and Henderson Land Development  0012.HK  both
gained over 1%.
    Regina Ip, convenor of the government's advisory Executive
Council told Bloomberg TV on Tuesday morning Hong Kong may
consider waiving extra stamp duty on homes for mainland Chinese
buyers as a way to shore up the economy and reverse a brain
drain.
    She later clarified to Commercial Radio Hong Kong it was a
suggestion from her New People's Party, which would be raised to
the government during the consultation period for the Policy
Address.       
    Hong Kong earlier this year was ranked by survey company
Demographia as the world's most unaffordable housing market for
the 12th consecutive year.
    Hong Kong private home prices fell at a faster pace in June
and dropped to the lowest since December 2020, as homebuyers
stayed on the sidelines due to an uncertain outlook and rising
interest rates.  urn:newsml:reuters.com:*:nL1N2Z805Y

 (Reporting by Clare Jim; Editing by Sam Holmes & Simon
Cameron-Moore)
 ((clare.jim@thomsonreuters.com;))