Hong Kong Developers Against New Property Cooling Measures
November 24, 2010 - Hong Kong
Property developers criticized government measures to rein in Hong Kong's rising property prices, stating that these measures do not fit with the government's aim as they are more prone to scare off ordinary home buyers rather than wealthy speculators.
New World Development managing director Henry Cheng described the proposed measures, such as a sharp hike in stamp duty, as "a strong dose" that will do as much harm as good.
Additionally, Ricacorp, one of Hong Kong's largest real estate agents, believes that these measures are not necessarily suitable to Hong Kong, since the shortage of land and housing in the city was the main problem.
Hong Kong's Financial Secretary John Tsang on Friday unveiled the measures to control runaway property prices in the city.
In order to avoid property speculation, anyone reselling a property within six months of purchase from now on is subject to a 15 per cent stamp duty, while a 10 per cent duty applies to sales between six and 12 months and five per cent between 12 and 24 months.
The head of the Hong Kong Monetary Authority has also outlined measures that limit the availability of mortgages, which led to public anger and a warning from the International Monetary Fund of a potential bubble.
Although the measures have yet to be passed by the Legislative Council, they have already had a considerable impact in the city.
Via Property Report
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