Residential property tax revenues drop 9pc

Hong Kong's residential property related tax revenue in August dropped by 8.

Staff reporter

Wednesday, September 12, 2018

Hong Kong's residential property related tax revenue in August dropped by 8.9 percent to HK$2.58 billion, compared with July, the Inland Revenue Department said in a report. This was mainly attributed to the doubled ad valorem stamp duty and special stamp duty.

Buyer's stamp duty cases, which is applicable to non Hong Kong permanent residents, increased by 36.8 percent from 201 in July to 275 in August, and the amount of the duty collected climbed by 4.1 percent to HK$681.3 million.

As for the doubled ad valorem stamp duty and special stamp duty, the number of cases related to residential property increased from 541 to 559, while the non-residential property cases decreased by 17.8 percent to 2,272.

The total DSD revenue plunged by 13 percent to HK$1.87 billion in August, a new low.

Meanwhile, Sun Hung Kai Properties (0016) launched the first batch of 144 apartments in its Park Yoho Napoli project in Yuen Long, providing up to 95 percent of mortgage loans. The latest batch of flats for pre-sale has an average per-square-foot price of HK$15,211 after discounts.

The development provides 712 studio flats, one-bedroom and two-bedroom homes.

The smallest unit is sized at 228 sq ft.

Separately, Executive Council member Joseph Yam Chi-kwong, said in a recent interview that Hong Kong may have to increase the prime rate but he does not worry about systemic risk in Hong Kong's market.

Yam, the former chief executive of the Hong Kong Monetary Authority, added that once the Hong Kong and US interest spreads lead to carry trades and capital outflows, Hong Kong could raise the interest rate, "but it is nothing unusual," stressing that local banks have abundant liquidity and a high capital adequacy ratio. As a result, there is little chance of a systemic crisis in Hong Kong.

He also said that the emerging markets' volatility will not impact China.