The removal of property curbs a year ago has failed to support home prices, as the market value of private residential properties in Hong Kong was down by HK$480 billion (US$61.7 billion) since February 2024, Centaline Property said on Thursday.
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Last year as part of his budget address, Financial Secretary Paul Chan Mo-po removed decade-old curbs on the property market in a drastic bid to support the ailing sector.
The withdrawn measures included the Buyer’s Stamp Duty that targeted non-permanent residents and a New Residential Stamp Duty for second-time purchasers. Also, homeowners were no longer required to pay a Special Stamp Duty if they sold within two years.
Transactions rose immediately, as first and second-hand private residential market recorded an average of 5,387 deals every month in the second quarter, nearly 90 per cent higher than the previous quarter’s 2,873 transactions per month, according to Louis Chan Wing-kit, CEO of Centaline Property Agency.
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Hongkongers react after 2024-25 budget scraps measures to cool property market
Hongkongers react after 2024-25 budget scraps measures to cool property market
But the improvement was short-lived, with transactions dropping back to an average of 3,017 per month in the third quarter.
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In October, the city said it would relax its mortgage policies and include property investment in the New Capital Investment Entrant Scheme (CIES). In the fourth quarter, transactions rose to an average of 4,554 per month.