Hong Kong plugs property tax loophole amid home-buying spree

Hong Kong

HONG KONG'S government tightened property rules for the second time since last November to shut a loophole that allowed investors to snap up multiple units in one shot to qualify for lower tax rates.

Under the new rules, first-time home buyers acquiring more than one property in a single contract will be charged the same 15 per cent stamp duty that applies to purchases of a second property, rather than the 4.25 per cent duty for first-time buyers. The change, announced late on Tuesday by Hong Kong's Chief Executive Leung Chun-ying, took effect at midnight.