The market’s long-term recovery depends on interest rate trends, as homebuyers remain cautious amid the US-China trade war, experts say.
Hong Kong’s residential property market is showing signs of improvement following the government’s decision to lower the stamp duty for small flats, but market experts believe a buoyant stock market has played a greater role in boosting market confidence and that interest rate trends remain crucial.
The Hong Kong government reduced the stamp duty on the sale of flats worth up to HK$4 million (US$515,000) to just HK$100, down from HK$60,000, Financial Secretary Paul Chan Mo-po announced in his budget address on February 26. The previous threshold was for homes worth up to HK$3 million.
“The new policy did help to improve the residential market as the sell-through rate of those small flats in recent new launches in the first-hand market was good,” said Buggle Lau Ka-fai, chief analyst at Midland. “But it may not be the main reason for the uptick in transactions.”
