Hong Kong scraps all property cooling measures | HK Weekend Property Market Recap

In today’s Budget announcement, the Hong Kong government scrapped all property cooling measures with immediate effect. These measures included Buyer's Stamp Duty (BSD), Special Stamp Duty (SSD), and New Residential Stamp Duty (NRSD). According to finance chief Paul Chan Mo-po, the cooling measures were “no longer necessary” in view of the current economic and market conditions.

The tax axe came amid calls from all sectors asking for “spicy taxes” to be reduced or scrapped, and is expected to bolster the market and improve buyer sentiment.

There’s also been a strong call from all sectors for the Financial Secretary to either reduce or scrap property cooling measures in the upcoming Budget announcement next Wednesday.

Even before the Budget announcement, property developers appeared optimistic about the withdrawal of property cooling measures, and subsequently prepared for the launch of new residential developments.

Among the developers, Henderson Land adopted the most aggressive approach, with its main focus on small apartments. Within two days, the developer unveiled the name, sales brochure, show flats, and prices for the Phase One development of Belgravia Place in Cheung Sha Wan. The flats are expected to be sold as early as next week, seemingly aiming to capitalise on the removal of cooling measures.

Meanwhile, Sun Hung Kai Properties has launched a new luxury residential project, Cullinan Harbour, leading this year’s project’s launches, with the sales brochure for its Phase One development uploaded just last week. The first phase will involve five high-rise apartment blocks and two low-rise blocks.

Additionally, CK Asset, which last year launched The Coast Line in Yau Tong with prices dubbed "explosively cheap," has also officially named its Phase Three project with the MTR, as Blue Coast, and it’s expected to launch as early as next month.

Following the withdrawal of cooling measures, many property owners who had listed their properties for sale anticipated a warming market. Consequently, they immediately raised their prices, with increases ranging from HK$80,000 to HK$500,000 and some even decided to take their homes off the market temporarily.

With that said, some buyers managed to enter the market before the budget announcement, seizing the opportunity to buy at what they perceived to be the market's bottom. To illustrate this trend, we review deals from New Kwai Fong Gardens (Kwai Chung), The Reach (Yuen Long), and Allway Gardens (Tsuen Wan).

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