Hong Kong mulls waiving stamp duty for Chinese buyers

Hong Kong mulls waiving stamp duty for Chinese buyers

As a way to shore up the economy and reverse brain drain, Regina Ip, convenor of the government's advisory council told Bloomberg on Tuesday that Hong Kong may consider waiving stamp duty on homes for mainland Chinese buyers.

The shares of Hong Kong property developers went up 4.1 per cent, with New World Development Co up 5.5 per cent and Sun Hung Kai Properties up 4.1 per cent. CK Asset Holdings and Henderson Land Development both gained over 3 per cent.

Ip said on Bloomberg TV that there are a lot of measures under consideration and this is certainly something that the government could consider.

Chinese investments were one of the drivers of higher property prices in Hong Kong before the year 2019. Hong Kong was ranked as the world's most unaffordable housing market for the 12th consecutive year by survey company Demographia earlier this year.

In June, Hong Kong private home prices fell at a faster pace and dropped to the lowest since December 2020, as homebuyers stayed on the sideline due to an uncertain outlook and rising interest rates.