Abolishing stamp duty 'could revive economy'

Hong Kong's home prices are expected to keep falling, but the removal of all stamp duties on homes will help to prevent a sharp drop and stimulate the gloomy economy, said a group of property professionals.

At an event organized by think tank 107 Momentum, Centaline chairman Shih Wing-ching urged the government to lift all "spicy measures" introduced since 2010 to cool the property market and allow time for the government to handle the worsening economy.

Shih said the 30 percent buyer's stamp duty for non-residents should be scrapped as it contradicts the government's aim to attract talent. He also said the government should reduce its land sales to prevent a sharp drop in prices.

Sammy Po Siu-Ming, chief executive of Midland Realty's residential division, also appealed for the removal of all property taxes, especially the double stamp duty, which deters buyers from owning more than one home. This could potentially slow down the recent surges in rents, he said.

If there are no changes in the stamp duty, Po predicted a further 3 percent drop in home prices in the fourth quarter as well as the possibility of further declines next year.

However, Hong Kong Property Agencies Association chairman Tony Kwok Tak-leung suggested a gradual decrease in stamp duty, including cutting double stamp duty from 15 percent to 6 percent.

Ho Lok-sang, a professor at the Economics Department of Lingnan University, advised charging non-resident buyers based on the duration of their residence in Hong Kong, instead of a one-off levy.

In other news, The Vertex in Cheung Sha Wan will open three show flats with HK$128,800 worth of furniture to lure buyers. The manager VMS said the project has sold 99 units for about HK$1.2 billion since its relaunch in February.