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Hong Kong slaps 15% tax on foreign home buyers

posted 29 Oct 2012, 06:23 by Mpelembe Admin   [ updated 29 Oct 2012, 06:24 ]

Reuters Business  Report - Today's daily digit is 15%.

That's the new tax foreign buyers will need to pay on Hong Kong property purchases.

The government wants to curb red hot real estate prices, which have risen 20% in the first 9 months of this year.

Authorities also hiked the stamp duty on short term property sales.

Shares in Hong Kong developers slumped on worries the new measures would sap demand.

It's the first time the government has imposed such measures, but is unlikely to be the last, says Joy Yang of Mirae Asset Securities.

CHIEF ECONOMIST, GREATER CHINA, MIRAE ASSET SECURITIES, JOY YANG, SAID:

"It seems government intervention is increasing, and it probably signals a new trend inHong Kong that the government has to intervene more and more."

Analysts say the move targets mainland Chinese buyers, whose appetite for Hong Konghomes has helped make the city one of the world's most expensive property markets.

But there's also been a flood of hot money into Hong Kong after the U.S. Fed's latest round of easing measures -and expectations that flow will continue may drive home prices to more dizzying heights


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