Hong Kong’s Annual Budget is set to be delivered on the 28th of February, with Financial Secretary Paul Chan Mo-po reported to open up new revenue streams for the government. Capital gains tax is one such area that has aroused market concern.
The UK and Australia have also set up relevant property taxes. However, capital gains taxes in the UK and Australia only apply to rental properties.
As for Hong Kong, it’s unclear whether this tax will be implemented for the time being, as housing prices have now returned to levels seen in 2017. Therefore, it’s expected that only homeowners who have held their properties for over ten years will be affected by any capital gains taxes.
Next, following the government’s suspension of residential and commercial land sales, Secretary for Development Bernadette Linn Hon-ho said that the city would put smaller sites up for tender to revive land sales.
Amid an uncertain market outlook, major developers slowed the launches of new developments. Meanwhile, small and medium-sized developers are speeding up sales of new flats.
The project Phoenext in Wong Tai Sin took the lead, launching its first round of sales over the weekend. The project received a decent response. Among the 165 available units, about 96 units were sold, which is about 60% of the available units.
Looking at the first-hand market, driven by sales of Phoenext, a total of 112 transactions were recorded in weekend deals, marking a six-time increase week-on-week.
Turning to the second-hand market, as the market focused on new projects, weekend transactions declined across the board.
Despite a modest improvement in market sentiment, the property market remains volatile, with buyers exhibiting increased caution when entering the market. As such, homes with significant price reductions remain the most attractive to potential buyers. We conclude with three cases of such properties.
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| Property Type | Price | Ads Period |
|---|---|---|
| For Sale Property | ||
Normal Listing Typical One | HKD:1000 (or Hsemoney:1000) | Valid:90 days |
Golden Top Listing Higher position than Top listing 2-3times better performance | HKD:3000 (or Hsemoney:3000) | Valid:60 days |
| Rental Property | ||
Normal Listing Typical One | HKD:1000 (or Hsemoney:1000) | Valid:80 days |
Golden Top Listing Higher position than Top listing 2-3times better performance | HKD:3000 (or Hsemoney:3000) | Valid:60 days |
