Talk of the town：Revocation of ''harsh measures'' in the property market
【明報專訊】The government has published a new budget and decided to fully revoke the ''harsh measures'' in the property market with immediate effect. The new residential stamp duties, buyer's stamp duties and special stamp duties will no longer be imposed on residential property transactions.
Reasons for implementing the ''harsh measures''
Residential property serves not only as a necessity for daily living but also as a profitable investment product. On the one hand, flat owners can benefit from capital gains when buying and selling their properties. For example, if A purchased a flat in 2015 for HKD 10,000,000 and its value increased to HKD 20,000,000 in 2018 due to rising property prices, A could sell it and generate a significant profit. On the other hand, flat owners can also earn rental income by leasing out their properties.
Hong Kong has been grappling with a severe housing affordability crisis characterized by skyrocketing property prices and limited supply. The implementation of ''harsh measures'' was aimed to cool down the overheated market and make homeownership more accessible for the general population.
In the recent Budget 2024/25, the government has fully revoked the ''harsh measures'' in the property market. During a press conference, Financial Secretary Paul Chan stated that the decision to revoke these measures had been made in response to the current situation. The ''harsh measures'' were implemented when there was an imbalance between housing supply and demand, with rapidly rising property prices. However, it is expected that there will be sufficient housing supply in the future, thus the measures are ''no longer necessary''.
■Game
If a property is sold at HKD 10,000,000, and the stamp duty is 15% of the selling price, what is the total cost of buying this property, including the stamp duty?
(Answer on next text)
■Grammar booster
Grappling with something
To try to deal with or understand a difficult problem or subject.
E.g. The government has to grapple with the problem of unemployment.
■Glossary
revoke (v) 撤銷
necessity (n) 生活必需品
affordability (n) 負擔能力
overheated (adj) 過熱的
(Criticisms on this publication, if any, are aimed at pointing out the errors or defects of certain systems or policies with a view to rectifying or eradicating such errors or defects, as well as prompting improvement or remedy for them via lawful means. There is absolutely no intention of inciting hatred, discontent or hostility towards the government or other classes of the community.)
[Smarties' Power English 第406期]
Horizon：Yummy but stinky
【明報專訊】Are you a fan of durian or stinky tofu? The perception of smelli... 詳情
