• Version
• Download 9
• File Size 355.41 KB
• File Count 1
• Create Date 4 九月, 2013
• Last Updated 11 三月, 2021

Special Measures on Stamp Duty for Hong Kong Property Transactions

Instruments for the transfer of immovable property in Hong Kong have been subject to an ad valorem stamp duty (AVD) at a range of rates (currently up to a maximum rate of 4.25 per cent) depending on the amount or value of the consideration paid for the property. For a residential property, AVD is levied on the agreement for sale and purchase, whereas for a non-residential property, it is imposed on the assignment. The buyer and the seller are jointly and severally liable for paying AVD. Since the onset of the global financial crisis in late 2008, abundant liquidity and historically low interest rates have contributed to an influx of capital into Hong Kong, fuelling a speculative market in Hong Kong property and a consequent surge in property prices. In fact, property prices in Hong Kong have skyrocketed to such a level that home ownership is now unattainable for the general population. In an effort to address the pressing housing problem and bring the market under control, the Hong Kong Government has introduced three series of special measures on stamp duty since late 2010, when property prices accelerated to the level they were at when the previous housing bubble burst in 1997. These new measures, which aim to curb property speculation, have sparked fresh debate from all sides, particularly as the rules may lead to some unintended consequences. This article looks at the various measures introduced by the Government, the practical effects of the measures, and the controversies created.