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Vacancy tax is a short-term solution to Hong Kong’s long-term housing shortage crisis

The Hong Kong government plans to introduce a vacancy tax on empty new flats to pry open supply bottlenecks by imposing fines on developers for hoarding new homes. Under the proposed legislation, a tax equivalent to twice the estimated annual rental value will be levied on flats that remain unsold after 12 months of receiving an occupation permit. According to the Rating and Valuation Department, the preliminary findings in the Hong Kong Property Review 2019 indicate that the vacancy rate of… Source link

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The political message of Hong Kong’s proposed vacancy tax speaks louder than its efficacy in bringing down home prices

Some cities in Australia and Canada have introduced some sort of vacancy tax to motivate owners to put their homes for sale or rental on the market.Vancouver, a city which Hong Kong people are very familiar with, introduced a tax, equivalent to 1 per cent of the assessed value of a property deemed to vacant for more than 180 days. The tax was introduced two years ago when 5 per cent of Vancouver’s homes either stood empty or were underutilised, amid skyrocketing prices and soaring rents… Source link

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Hong Kong’s impending vacancy tax unlikely to derail new-found housing price momentum

The recent stock rally and US Federal Reserve’s dovish attitude on interest rates have muted the threat of the proposed vacancy tax in a bid to cool home prices by raising supply, say market watchers.The introduction of vacancy tax came a step closer after the Legislative Council’s housing panel started discussions on the proposal on Monday.According to the proposal, the Rating and Valuation Department will determine whether a developer needs to pay vacancy tax, which would be equivalent to… Source link

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Looming vacancy tax is prying long-held flats from Hong Kong developers who kept them locked away for future appreciation riches

Hong Kong’s tax on empty flats appears to be working. The city’s cash-rich developers had hoarded more than 9,000 new flats as of June 29, according to government data, when the vacancy tax was first proposed. Some of the flats had been held for more than a decade. The developers rightly assumed the prices would shoot up through the stratosphere if the flats were held and later sold as new. But in just over two months, facing the threat of a humongous tax bill for hoarding that is blamed in…

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Hong Kong retailers filling up empty shops, sending vacancy rates in tourist areas to 3-year low as landlords cut rents

Hong Kong is missing something lately: empty retail shops. Retail sales are up. So is tourism. And landlords are settling for lower rents for street-level shops – at least one was dropped by more than 70 per cent. The combination has sent vacancy rates of street-level shops down to 5.6 per cent – a three-year low – in four popular tourist areas, said Tony Lo, a director at Midland IC &I. The areas are Causeway Bay, Tsim Sha Tsui, Central and Mong Kok. Of 7,288 street-level shops there, only 408…

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