Hong Kong Budget 2024-25: Key Highlights Of Property Measures

• Published date: 08 March 2024
• Law Firm: Mayer Brown
• Author: Mr Wayne K.W. Cheng

Hong Kong Financial Secretary Paul Chan delivered the 2024-2025 Budget on 28 February 2024. This Legal Update highlights a few aspects relevant to the real estate industry.

Cancellation of Stamp Duty Measures

The government cancels all demand-side management measures for residential properties with effect from 28 February 2024. This means that no more special stamp duty (SSD), buyer's stamp duty (BSD) or new residential stamp duty (NRSD) is payable for residential property transactions. Sellers and buyers of residential properties are still required to pay ad valorem stamp duty (AVD) at the same rates as Scale 2 rates (from HK$100 up to 4.25% of the consideration) - see table below (HK$).

Amount or Value of the Consideration; (Whichever Is the Higher)		AVD Scale 2 Rates
Exceeds	Does Not Exceed
-	$3,000,000	$100
$3,000,000	$3,528,240	$100 + 10% of excess over $3,000,000
$3,528,240	$4,500,000	1.5%
$4,500,000	$4,935,480	$67,500 + 10% of excess over $4,500,000
$4,935,480	$6,000,000	2.25%
$6,000,000	$6,642,860	$135,000 + 10% of excess over $6,000,000
$6,642,860	$9,000,000	3%
$9,000,000	$10,080,000	$270,000 + 10% of excess over $9,000,000
$10,080,000	$20,000,000	3.75%
$20,000,000	$21,739,120	$750,000 + 10% of excess over $20,000,000
$21,739,120	-	4.25%

VD rates for residential and non-residential property transactions are now aligned. There will be no more differential treatment between (a) residential and non-residential property transactions; (b) buyers who are Hong Kong Permanent Residents (HKPR) and those who are not. Corporate buyers and non-HKPR buyers, whether buying residential properties, offices, shops, parking spaces, are all liable to the same AVD Scale 2 rates.

Public Revenue Protection (Stamp Duty) Order 2024 with the draft bill to amend the Stamp Duty Ordinance (Cap. 117) to give effect to the changes...