After the hong Kong government lowered stamp duty for first-time buyers, small and medium-sized homes saw transactions rise in the secondary market.
Yuen Long reported six units traded on February 22, when the stamp duty cut was announced in the Budget, said Centaline Property's deputy regional sales manager, Ken Wong Kan-hok.
Inquiries on home purchases surged and the home viewing appointments last weekend increased up to three times week on week.
Victor Chung, associate district manager at Midland Realty, said 15 deals were recorded in Tsuen Wan in one day after the Budget announcement, with 70 percent at HK$9 million or below.
On Wednesday night, City One Shatin saw a two-bedroom unit sold for HK$5.1 million, or HK$16,612 a square foot.
Meanwhile, deals were made without bargaining between the sellers and the buyers after the price cut dominated the secondary market last year.
A two-bedroom flat at Sun Yuen Long Centre above the Light Rail Yuen Long stop was sold for HK$6.4 million without a price reduction, or HK$13,734 per sq ft.
Elsewhere, Discovery Park in Tsuen Wan reported a three-bedroom flat traded for HK$8.8 million, or, HK$14,618 per sq ft, to which the holder offered no price cut.
Kam Hay Court in Ma On Shan recorded a two-bedroom unit sold for HK$4.99 million, a free-market price level, with the price per sq ft at HK$12,444, said the Century 21 Goodwin Property Consultants.
First-time home-buyers are keeping up.
At Goodrich Garden in Tuen Mun a home with two bedrooms changed hands for HK$3.98 million, or HK$10,845 per sq ft, for self-residence.
In Tsueng Kwan O, a buyer purchased the first home at Ying Ming Court for HK$6.2 million. The three-bedroom unit was at free-market-level price.
Some sellers raised asking prices. The holder of a flat at Centre Point in Mid-Levels added HK$1.18 million to the price tag, finally selling the property for HK$14.18 million.
This came after the Financial Secretary, Paul Chan Mo-po, said the stamp duty for first-home buyers of properties under HK$10.08 million was decreased, aiming to help local permanent residents get on the property ladder.
Under the new measure, which has come into effect, the bar of homes entitled to HK$100 stamp duty has been raised from HK$2 million to HK$3 million. It will save HK$44,900 at most on stamp duty for properties under HK$3 million, by charging the home-buyers HK$100 "symbolically."
For starter homes valued from HK$4 million to HK$9 million, the tax cut will be from HK$30,000 to HK$67,500.
The tax for buying homes between HK$9 million and HK$10.08 million will be HK$270,000, plus 10 percent of the excess amount over HK$9 million.
Homes from HK$4 million to HK$9 million will benefit the most from the levy cut, considering that the homes with an asking price below HK$3 million take up less than 2 percent of the units for sale in the secondary market.
With the tax cut, first-time homebuyers might speed up their home purchases, which could further improve the sentiment of the local property market.
Small and medium homes valued below HK$10 million, accounting for more than 80 percent of 2022 sales, will dominate the market in the future, said Sammy Po Siu-ming, chief executive of Midland Realty's residential division.
