Homeowners and buyers who are not permanent Hong Kong residents will find it easier to purchase a residential property here, as Chief Executive John Lee announced on Wednesday to partially ease market-cooling measures with immediate effect.

The Buyer's Stamp Duty (BSD) and the New Residential Stamp Duty (NRSD) will each be halved, from 15 percent to 7.5 percent.

The CE also said in his Policy Address that incoming professionals who buy a property in Hong Kong are offered to defer their stamp duty payment.

"Under the suspension arrangement, the payment of stamp duty concerned is suspended at the time of property acquisition, but the talent is required to pay the relevant amount if he/she is subsequently unable to become a [Hong Kong permanent resident]," Lee said.

Homeowners now only need to pay a Special Stamp Duty (SSD) if they sell their home within two years of their purchase, instead of the current three years.

Lee said the recent market situation and the increasing housing supply in Hong Kong in the coming years were behind the changes to the so-called "spicy measures".

"Over the past year, interest rates have risen significantly, various economies have shown moderated growth, and transactions of the local residential property market have declined alongside a downward adjustment of property prices."

Speaking in a press conference in the afternoon, Lee said the measures struck the right balance.

"It is important that at one stage when we do any change of relaxation, then we maintain stability in the market. So, considering all factors, I think what I have just introduced is a right mix of measures, of some measures being retained and some measures being relaxed.

"We want people, when they make a decision about buying a property, which is one of the most important decisions for a lot of families, they will be able to make a good judgement, good decision, as a result of government policy."

The government has introduced several rounds of property cooling measures since 2010 to curb short-term speculative activities and reduce external demand.
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Last updated: 2023-10-25 HKT 17:45