HONG KONG - Hong Kong's government said on Wednesday it would raise the transaction tax on luxury apartments and increase land supply to try and prevent the property market from overheating.
Financial Secretary John Tsang said in his annual budget speech that stamp duties for luxury apartments worth over HK$20 million (US$2.58 million) would be raised to 4.25 per cent of the transaction value from 3.75 per cent.
Average housing prices in Hong Kong have risen nearly 30 per cent since the first quarter of last year, sparking concerns that it faces a higher risk of a bubble forming than the rest of Asia.
Residential property prices have been rising strongly due to demand from wealthy mainland Chinese, tight land supply and a loose monetary policy. -- REUTERS
