Thanks to the budget announced at noon, some local real estate stocks in Hong Kong rose. As of press release,$HENDERSON LAND (00012.HK)$,$NEW WORLD DEV (00017.HK)$An increase of about 3%,$SHK PPT (00016.HK)$An increase of more than 1%,$CK ASSET (01113.HK)$Follow the trend.

In terms of news, the Financial Secretary of the Hong Kong Special Administrative Region Government, Chan Mao-po, announced the 2024/2025 fiscal year budget in the conference hall of the Hong Kong Special Administrative Region Government Legislative Council Complex. Among them, the new policy on the Hong Kong property market attracted widespread attention in the market.

Chen Maobo explained that on October 25 last year, the SAR government announced adjustments to residential property demand management measures. Relevant adjustments include shortening the application period of additional stamp duty from three to two years, halving the tax rate for buyer's stamp duty and new residential stamp duty, and implementing a “first exempt and then levy” arrangement for foreign talent to buy property. Among them, the “exempt before recruitment” arrangement is very popular. More than 500 applications have been approved, proving Hong Kong's appeal to foreign talents.

Chen Maobo said that the HKSAR Government has been closely monitoring the situation in the residential property market. After careful consideration of the current overall situation, the HKSAR Government decided to abolish all residential property demand management measures with immediate effect. Starting on the 28th, all residential property transactions will no longer be subject to additional stamp duty, buyer's stamp duty, and new residential stamp duty.

Hong Kong raises mortgage ratio by up to 70%

On the same day, the Hong Kong Monetary Authority issued guidelines to banks revising countercyclical macroprudential control measures and other relevant regulatory requirements applicable to property mortgage loans. The maximum mortgage ratio for private residential properties worth HK$30 million or less was adjusted to 70%; for private residential properties worth HK$35 million or more, the maximum mortgage ratio was adjusted to 60%.

In order to avoid a sharp drop in the applicable mortgage ratio, the mortgage ratio for properties between HK$30 million and HK$35 million will be gradually reduced. Furthermore, the maximum mortgage ratio for non-private residential properties was raised from 50% to 60%.

edit/new