(Policy Address 2023) Hong Kong eases 'spicy measures' on home-buying

Hong Kong will be taking away some spice - relaxing some of its harsh measures in the property market starting today.

It is understood that the Special Stamp Duty levied for property resale within three years will be shortened to two. In other words, if a property owner disposes of his/her property two years after acquisition, the owner will no longer need to pay the Special Stamp Duty, which amounts to 10 percent of the property price.

The Buyer's Stamp Duty and the New Residential Stamp Duty payable by residents while purchasing residential flats will also be lowered from 15 percent to 7.5 percent.

The move will alleviate the financial burden on Hong Kong Permanent Residents who have already owned residential properties in their acquisition of another residential property, as well as reduce the costs of non-HKPRs in their acquisition of residential properties, said Lee.

Meanwhile, a stamp duty suspension arrangement will be introduced for incoming talents' acquisition of residential properties.

Lee said this is an enhancement of the stamp duty refund arrangement introduced last year for eligible incoming talents, whereby an incoming talent is required to pay the Buyer's Stamp Duty and the New Residential Stamp Duty at the time of property acquisition and will get a refund of the stamp duty paid when the talent concerned has resided in Hong Kong for seven years and become a HKPR.

Under the suspension arrangement, the payment of stamp duty concerned is suspended at the time of property acquisition, but the talent is required to pay the relevant amount if he/she is subsequently unable to become an HKPR.