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Hong Kong weekend property sales fall on new stamp duty

In response to its property becoming increasingly unaffordable, Hong Kong introduced its third set of property curbs on both residential & non-residential properties.

The government has doubled the stamp duty to as high as 8.5% of the property value for any transaction valued at HK$2 million (US$258,000) or more. The exception to the stamp duty is given only to first-time homeowners that are also permanent residents of the city.

In the past 4 years Hong Kong home prices have doubled as a result of an influx of mainland Chinese buyers and a lack of new supply. The Chinese city's homes cost 13.5 times the gross median household income, an increase from the 12.6 times a year ago.

Not only is the residential property expensive, but so is its non-residential property. Hong Kong reportedly has the highest rent for shops in the world, and the second-highest rent for office spaces. 

Read the full story on Bloomberg Businessweek.