New stamp tax for foreign corporation buys keeps deals local
San Francisco, CA -- (SBWIRE) -- 02/11/2013 -- The home sales have rebounded sharply in Hong Kong with the last month, driven up primarily by the local buyers who are unaffected by the government's new stamp tax provisions that target overseas corporate investors.
Agents stated that the sales momentum will extend through the next month while residential transactions continue to improve, fueled by the excess of liquidity and lowered interest rates.
The sheer number of residential transactions has increased by 65.2% to 5,430, from December, whilst the total value of deals surged 66.3% to HK$28.5 billion, according to the Land Registry data released on Monday.
"Flat hunters stormed back into the market after they saw home prices showed no signs of falling. In addition, the overall improvement in the stock market also helped to restore buying confidence," Ricacorp Properties research head Patrick Chow Moon-kit said.
How stated that home sales would continue to experience a rise as the number of persons preferred to set their money into real estate. "Some buyers were willing to increase their offers to match the increases sought by sellers and deals were now being sealed faster," he said.
Many Wells Property Agent noted that a buyer agreed to pay HK$4.3 million, or HK$8,398 per square foot of saleable area in a deal for a flat in Chelsea heights in Tuen Mun. That is the most expensive deal for property in that size of a unit in the housing estate.
Buggle Lau Kai-fai, who sits as chief analyst at the Midland Realty, stated that the number of transactions in the secondary home market was set to slow as the developers attempt to increase marketing of projects.
Total transactions for property, which includes the homes, offices, and parking spaces, exceeded 8,300 of January. That was a 9.1% decrease from December.
"Home-seekers' attention will shift to the primary market as more new projects are put on sale in coming weeks," he said.
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