Hong Kong Regulatory Updates

11 June 2011 - HKMA Raises Minimum Down-Payment Ratio

In the second quarter of 2011, the HKMA (Hong Kong Monetary Authority) had ordered local banks to tighten down-payment ratios for buyers in an effort to rein in the soaring property prices. For homes costing more than HKD$10 million, down-payments were increased to 50%, homes between HKD$7 to $10 million increased to 40% with the loan capped at HKD$5 million, for homes costing below HKD$7 million the down-payment ratio’s remained at 30% but with the loan capped at HKD$4.2 million.
_______________________________________________________________________________

11 June 2011 - Overseas buyers may face a higher down-payment

In response to the influx of affluent Mainland buyers contributing to the heated Hong Kong property market, in the month of June, 2011 the HKMA ordered local banks to raise down-payments for non-local residents. Mortgage applicants in Hong Kong whose primary income is outside Hong Kong will need to make a higher down payment of at least 10 percent irrespective of the property type or value.
_______________________________________________________________________________

20th November 2010 - Special Stamp Duty

With effect from the 20th November 2010, the HKSAR Government imposed a Special Stamp Duty to the sale of property for the sole purpose of curbing speculation. If any property is acquired and resold within 24 months it will be subject to this Stamp Duty and is usually payable by both parties. If applicable, the amount of special stamp duty payable is 15% of the purchase price for a property that is held for less than 6 months, 10% for holding period less 12 months and 5% for a holding period less than 24 months.