'Time to end' harsh speculation curbs

Luxury homes worth at least HK$30 million should be exempted from double stamp duty to help energize the property market, says Henry Tang as he urges the government to reduce some of the "harsh" speculation measures.

Tang, the financial secretary from 2003 to 2007, said home prices have dropped 15 percent since 2021 and that it is a good time to end some of the harsh measures.

"[The most important principle] is that homes are for people to live in instead of something for speculation," he said.

Tang said authorities could consider reducing the measures for properties worth over HK$30 million, including canceling the double stamp duty. Since not anybody can buy a HK$30 million home, the proposal will not affect the general public, he said.

Tang said the ad valorem stamp duty for people buying their first home could also be lowered.

For example, he added, those buying flats lower than HK$5 million should only pay HK$100 for stamp duty which would help first-time buyers.

He noted that Hong Kong imposes a 0.13 percent stamp duty for both buyer and seller, meaning it charges a stamp duty of 0.26 percent per trade - five times higher than the 0.05 percent in the mainland.

The whole world is facing financial issues, Tang said, adding that local enterprises and the public should support government measures to energize the city's economy.