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Showing posts from November, 2016

Hong Kong Property Prices and Park Island Property Price head towards new historical highs

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Based on the latest Hong Kong property data Centadata property price graph Hong Kong property prices continued their upward climb, heading towards all time historical highs.

Park Island apartment prices rose over 6% last week and are now also again approaching historical highs.
It is very obvious that were not for the recent additional "cooling measures" implemented 5 November 2016 (see New HK Stamp duty for property) prices would have reached absolute new highs by end of 2016. 
It now remains to be see what effect the recent cooling measures, as well as the effect of the election of Donald Trump on HK Property. As I have explained in prior posts, from a valuation perspective, I would look at HK property as incorporating the value of every type of cooling measure, which will be "realized" on any eventual reduction of such measures.
I would expect to see somewhat of a short term dip in prices as the latest round of cooling measures take effect, but who knows, somet…

How to calculate stamp duty for Hong Kong property purchase.

The calculation of stamp duty when buying HK property is something many people are confused about. I was asked about this some time ago, and there was also a recent comment on this topic on my Park Island blog topic: What will HK property prices do suggesting that the current tax system on HK property made Park Island quite desirable in terms of value for money.
I'll try to provide a guide to HK property stamp duty in a simple way for readers.
First, you need to look at the value of the HK property you are buying. 
Below are the stamp duties to pay on buying Hong Kong property. Legally, its the buyer who pays, although you can negotiate for the seller to cover some or all of it, but as far as the HK Inland Revenue Department is concerned the buyer must pay it:
Amount or value of the consideration Rate Exceeds Does not exceed
$2,000,000 1.5% $2,000,000 $2,176,470 $30,000 + 20% of excess over $2,000,000 $2,176,470