Hong Kong Levies 15% Tax on Property Purchases by Foreigners
Hong Kong’s Financial Secretary John
Tsang announced that, in order to stabilize the residential market in an
environment of continued low interest rates and weak economy, the government
would put a new tax of 15 percent on all residential property purchases by
foreign nationals. The new measures went into effect on October 27, 2012."This is an extraordinary measure
introduced under exceptional circumstances," Mr. Tsang said in a news
conference late Friday, October 26, 2012.
This is the latest in a series of
measures the city's government has launched since 2009 to cool the residential
market, but with little impact on the rise in house prices. Data from Morgan
Stanley show that property prices in Hong Kong stand out in comparison with
Singapore and other neighboring countries.
Source: JP Morgan
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