The Stamp Duty (Amendment) Bill 2026 has been passed by the Legislative Council on Wednesday, increasing the stamp duty rate for residential property transactions with an amount or value of consideration above HK$100 million from 4.25 percent to 6.5 percent, with effect from February 26 this year.
A government spokesperson said that the measure is expected to increase government revenue by about HK$1 billion per year, and only about 0.3 percent of the highest-priced residential property transactions will be affected.
Augustine Wong Ho-ming, a Legislative Council member from the real estate and construction constituency and executive director of Henderson Land Development (0012), spoke against the stamp duty hike for luxury properties, warning it would dampen the recovering market.
Since the measure was proposed in the 2026-27 Budget, the volume of residential property transactions valued above HK$100 million has dropped from 32 in January to 9 in April, he said.
Although only 0.3 percent of deals will be affected, the move will send a misleading signal that the government will intervene as soon as the market picks up, which undermines both market confidence and policy predictability, he added.
The rising stamp duty also contradicts the city's push to draw overseas capital, businesses, and family offices, Wong said.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu noted that the government is unworried about the impact on attracting talent and family offices, adding that only limited residential deals will be affected, and Hong Kong's appeal for global talent is anchored in broader strengths, not merely tax regimes.
Responding to concerns that the measure will hamper renewal projects, Hui said he is in talks with the Development Bureau, industry, and relevant lawmakers to explore ways to facilitate future redevelopment.
