What stamp duty?
Defying expectations after the increased stamp duty on property purchases, Hong Kong just saw the sale of the most expensive apartment in Asia in terms of cost per square foot.
Units 16A and 16B at luxury development Mount Nicholson on The Peak sold for a record HKD104,803 (USD13,500) per square foot or HKD1.1 million (USD142,000) per square metre on Tuesday, the South China Morning Post reported. The flats, which are adjoining, cover an 8,702-sq ft (808 sqm) area, with eight bedrooms and 12 toilets.
The transaction comes on the heels of the SAR government starting to levy a 15 percent stamp duty last week on home buyers across the board, with the exception of first-time purchasers who are also permanent residents. Critics contend that the stamp duty may do little to stem the demand for Hong Kong homes in the face of low US interest rates and the depreciation of the yuan.
Experts speculated as to the identity of the new flat owners. “They may be the children of super rich families who are do not own any apartments,” Sammy Po, chief executive at Midland Realty’s residential department, told the Post.
As first time purchasers, they stand to be charged only a 4.25 percent stamp duty.
With this latest sale, Hong Kong broke its own record transaction of a HKD590-million (USD76 million) duplex at the Mid-Levels district last year.