Cao Deming, chief vice president of Meridian Mortgage Referral, said that the complete removal of spicy practices in the current “Budget” is timely and will have a booster effect on the currently weak property market, and it is expected that real estate transactions will gradually pick up according to the market.
The Zhitong Finance App learned that on February 28, Hong Kong Financial Secretary Chan Mao-po announced in the “2024/25 Budget” the complete cancellation of Hong Kong's property market promotions, including the abolition of buyer stamp duty (BSD), new residential stamp duty (NRSD) and additional stamp duty (SSD). Cao Deming, chief vice president of Meridian Mortgage Referral, said that the complete abolition of the spicy approach in the current “Budget” is timely. The complete abolition of the three major taxes can reduce the cost of ownership for buyers and introduce more international institutions to re-invest in the Hong Kong market, which will have a boosting effect on the currently weak property market, and property transactions will gradually pick up according to the market.
In recent years, the Hong Kong Special Administrative Region Government has implemented a high-end talent pass scheme to introduce more domestic and overseas professionals to work and settle in Hong Kong. The results of the plan have been remarkable. Currently, this group of talents can immediately buy a home on par with Hong Kong permanent residents. They only need to pay the second standard ad valorem stamp duty (AVD), and the tax burden has been drastically reduced. Cao Deming believes that under the new measures in line with previous measures to relax the upper limit of the mortgage ratio, it is possible to speed up attracting this group of professionals to stay and settle in Hong Kong in order to activate the Hong Kong property market.
Furthermore, the Hong Kong Special Administrative Region Government further relaxed the upper limit of the property price of the mortgage exchange market last year. Currently, the Hong Kong Special Administrative Region Government has abolished the new residential stamp duty (NRSD), which allows “buy first, then sell” property exchangers to sell their old units without having to pay spicy taxes first and rush to sell their old units at reduced prices, which will help reduce the cost of exchange. Cho Deming believes this will further stimulate transactions in the exchange market.