Commercial property deals in Hong Kong are expected to drop this month after a jump in August that was driven by the phase two release of Billion Plaza in Cheung Sha Wan.
The total number of commercial transactions in August was 152, as opposed to 76 in July, according to Riacorp Properties. More than 70 of the deals were at Billion Plaza.
If the Stamp Duty (Amendment) Bill is passed, stamp duty will double for property sales more than HK$2 million completed on or after February 23, which is the day after the anti-speculation measure was announced.
Investors are understandably concerned about this development, as well as the possibility that rents may have peaked and could start falling.
According to International property consultancy DTZ, demand for business space has been sluggish in the third quarter so far.
Overall office rents have declined 12 per cent after hitting a peak in the third quarter of 2011.
The average effective rent in Central dipped 1.2 per cent to HK $103 per square foot per month, compared to $104.20 in the last quarter, according to DTZ.
Office prices are down 5 per cent since the government announced the increase in stamp duty.
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