However, the measure will not concern first-time transactions and local homebuyers. Until now, the tax has not exceed 8.5%. The move was taken by the Hong Kong government for the purpose to curb the growth of housing prices, which are the most expensive in the world compared to local incomes.
Hong Kong housing prices keep on growing amid low mortgage interest rates and flow of investments from mainland China, which investors prefer to place money into assets denominated not in yuan.