Home: New tax imposed
Updated: 2012-10-27 06:38
(HK Edition)
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The SSD, ranging from 5 to 15 percent, is calculated based on the property purchase price or the market value of the property at the time of resale, whichever is higher, according to the length of time the property is held.
Under the new measure, homeowners will be slapped with a SSD of 20 percent, 15 percent or 10 percent, respectively, if they resell their flats within six months, one year or three years of purchase, compared with the 15 percent, 10 percent or 5 percent, respectively, for resale within six months, one year, or two years of purchase, previously.
Tsang suggested, "These measures target specifically property investors who resell the flats within three years, but not the genuine end-users."
The latest measures came after previous government actions including faster land sales and stricter mortgage requirements failed to prevent home prices from rocketing.
Average home prices in the city has jumped over 93 percent since the beginning of 2009 as record low interest rates and inflation worries amid ample liquidity caused by quantitative easing worldwide send investors scrambling to seek a hedge in real assets. An influx of non-local buyers, particularly from the Chinese mainland, has also fueled the price gyration, which has also been boosted by a lack of new supply.
Residential property prices in the secondary market rose another 0.95 point over the week ended Oct 21, with the Centa-City Leading Index rising to 112.25, a new record high, according to compiler Centaline Property Agency.
(HK Edition 10/27/2012 page2)