HK commercial property market benefits from residential stamp duty | 18 December 2012
An increase in stamp duty on residential property in Hong Kong has provided a significant boost for the commercial sector.
According to figures released by real estate firm Midland and cited by chinadaily.com.cn, the commercial and industrial property markets are the strongest they have been since 1997, in terms of transaction volume/value.
A 15 per cent buyer’s stamp duty introduced in late October and increases to standard stamp duty have made residential property less attractive for investors. Daniel Wong, chief executive of Midland IC&I, claimed there has been a noticeable shift in the market.
The latest figures from Land Registry show that registration of sale and purchase reached 8,399 at the start of December 2012, with a sales value of HK$42.88 billion. This represents growth of 23.5 per cent and 49.3 per cent respectively compared with the previous year.
Another important factor in the growth in commercial property investment has been the introduction of ‘hot money’, which refers to the quantitative easing measures delivered by the US.
A report by bbc.co.uk before the stamp duty measures were announced noted that the government had been attempting to ‘cool’ the commercial property sector in Hong Kong, as the Chinese administrative region featured the most expensive commercial space in the world.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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