Harbor survey: It is expected that the relaxation of ad valorem stamp duty in the budget will have a positive impact, and the turnover of properties may further unleash vitality.

Hong Kong Property Research Department Director Wang Pindi said that the Hong Kong financial budget for 2025/26 was announced today. Although the relaxation of the investment immigration policy did not meet market expectations, the announcement of lowering the stamp duty tax threshold based on property price was a pleasant surprise. The cap on property value subject to a stamp duty of 100 Hong Kong dollars has been raised from 3 million Hong Kong dollars to 4 million Hong Kong dollars. This is believed to have a positive impact on the overall property market, as it will help reduce property acquisition costs and facilitate property turnover for both homebuyers and investors. It is estimated that under the new measures, the number of properties priced below 4 million that benefit from the measures has increased by 2.6 times compared to before. Wang Pindi expects a mini-boom in the property market, with an estimated sales volume of around 18,000 units for new properties in 2025, an increase of about 15% compared to the previous year. The registration volume of second-hand residential properties is expected to increase by over 2% to over 42,000 units, and the total transaction volume of both new and second-hand residential properties is expected to surpass the level of 60,000 units or above. If interest rates continue to fall, it will further stimulate market activity, especially for affordable properties. With the new stamp duty arrangement, the registration volume of residential properties priced at 4 million Hong Kong dollars or below is expected to increase to 19,000 units this year, a increase of over 10% compared to the previous year. This will reach a new high in 9 years since 2016, and property prices are expected to reverse the trend of decline for the past 3 years. After the announcement of the budget, Hong Kong Property conducted a survey in the form of a questionnaire on the latest "property intention after the budget" and received a total of 145 valid responses. The results showed that over 62.8% of respondents believed they would benefit from the housing policies in the budget. Additionally, 46.2% believed their confidence in property ownership was not affected, while nearly 43% of respondents felt an increase in confidence. About 11% felt a decrease in confidence, indicating that many citizens are optimistic about the future market. At the same time, 47.6% of respondents expressed interest in buying property, followed by 29.7% looking to upgrade, and 22.8% considering property for investment purposes.