Double Stamp Duty Raised To 15%
The government has raised the stamp duty on property transactions for non first-time buyers to 15%, effective November 5. This double stamp duty (DSD) only applied on individuals, corporate and overseas non-first-time buyers, charging 1.5% to 8.5% tax depending on the price of the property. The government claimed that this will help people who want to own homes, as first-time buyer will be exempted from the policy.
Second Hand Market Cools Down After DSD Rise
After the double stamp duty (DSD) being raised to 15%, second-hand market transactions decreased drastically. Only 3 transactions were recorded in the major 10 housing estates last Saturday. On the other hand, starter homes are still viral among first-time buyers and users, while some investors are not stopped by the increased tax. The Wings II in Tseung Kwan O recorded a two-room unit transaction, with the price increased by HK$100,000 to HK$8,100,000 by the seller after the policy launched. It is The Wing’s first two-room unit selling over HK$8 million and broke the price-per-square-foot record of the estate.
Alto Residences Still Viral Among First-time Buyers
Queues were found in the first-sale site of Tseung Kwan O’s new project Alto Residences last Saturday. Under the new double stamp duty policy, sources claimed that 80% investors did not show up while first-time buyers remained unaffected. Until 8PM last Saturday, 77 over 100 available units were sold. Meanwhile, agents claimed that there were at 4 non-local buyers including Mainland and Macau buyers, investing over HK$36 million.
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