Hong Kong government prevents property bubble

Malaysia News.Net
Thursday 25th February, 2010

The Hong Kong government has decided to raise stamp duty to avoid a property bubble.

A series of measures has been taken to cool down the property market, including increasing residential land supply and stamp duty for luxury flats.

The recent property frenzy has been supported by a massive inflow of funds.

The government has said it is concerned that if there is a reversal in capital flows or a rise in interest rates, the prices of property could become volatile.

In keeping with current thinking on the property market, stamp duty on apartments valued at more than HK$20 million will be raised from 3.75 per cent to 4.25 per cent in April.

Buyers of expensive properties will no longer be allowed to defer payment of stamp duty.

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