Hong Kong has increased its cooling measures on their growing property market.
Like Singapore, Hong Kong intends to slow down the market. Property price increase by 364 percent has been noticeable over the last 14 years. The Hong Kong Government introduces a 15 percent stamp duty as its latest tactic which is applicable to any first time buyer who is investing in more than one property at the same time.
The first stage of cooling measures started November of last year. Stamp duty was increased, however there was little effect on the market. It has been the time when average house prices are at a level that are not affordable to most.
This move is to avert first time buyers from purchasing more than one unit through the means of one legal document. To avoid stamp duty on second homes, some investors were partaking in. This has contributed to rising prices, but keep up with the demand.
To lessen international interest in one of the world’s most expensive property markets, property cooling measures have been put into place in a bid aiming for conjectural investors and buyers. Hoping to make property more affordable for residents. Somehow it resulted to many Mainland Chinese buying properties in Hong Kong in response to a weakening Yuan and constraint that have been imposed on residents on the outward flow of capital.
Comparable approach happen in Singapore. It took a while for the 2011 measures to have an impact on the market, once did, the market completely slowed down. Signs of a recovery with increased activity, is shown today.
The Hong Kong government tried to increase the supply of properties to help mitigate the situation. Over the next few years the number of new properties should surpass early estimates. The new cooling measures put in place would be an aid to those residents who want to buy property. In addition, some also claim that it is a message to developers not to encourage the purchase of multiple properties in one transaction.
Investors are likely to look further as the belts are being tightened in Hong Kong. Property in Thailand have caused attention in the crowds at a recent exhibitions in Hong Kong. And this interest is expected to continue as cooling measures are increasing.