Hong Kong set to impose vacancy tax on empty new flats

HONG KONG (Reuters) – Hong Kong proposed a vacancy tax on empty new homes on Friday in an attempt to discourage developers from hoarding, but analysts expect the measure to have little impact on prices in the world’s least affordable property market.

The tax, at 200 percent of a newly built unit’s rateable value, will need to be approved by the city’s Legislative Council, Chief Executive Carrie Lam said. The policy will not be applied on resold flats.

Hong Kong has one of the least affordable housing markets in the world and private home prices have been on a record-breaking run for 19 consecutive months, fuelling discontent among residents.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.