Several property developers in Hong Kong have criticised the government’s measures to cool the red-hot property prices, saying that the new measures were likely to scare off ordinary buyers rather than wealthy speculators.
Henry Cheng, managing director of New World Development, described the new measures as “a strong dose” that will do more harm to buyers.
One of HK’s largest property agents, Ricacorp, noted that the latest property measures are not suitable to HK, since the supply of land and housing units in the city-state are the main problems.
Last Friday, Financial Secretary John Tsang unveiled new measures to curb soaring property prices in the city.
To stop property speculation, homes sold within six months of acquisition are subject to a 15 percent stamp duty, while selling property between 6 and 12 months of acquisition will incur a 10 percent stamp duty and 5 percent between 12 and 24 months.
The head of the Hong Kong Monetary Authority also outlined measures that will restrict the availability of home loans, which led to a warning from the International Monetary Fund of a potential asset bubble. Although the measures have yet to be implemented, it has led to public anger and has already had an impact on the city.