"Hong Kong Property" JLL: Government's increase in luxury property stamp duty is inexplicable and may lead to a sharp decline in luxury property transactions in the short term

The Chairman of Jones Lang LaSalle Hong Kong, Zeng Huanping, stated that last year Hong Kong recorded approximately 122 transactions of luxury homes valued at HKD 100 million or above, the highest since 2022, indicating that this market is gradually recovering. Due to the extremely low level of transaction volume relative to overall transactions, it is believed that the government's proposal to increase the stamp duty on luxury homes priced at HKD 100 million or above in the new budget will not significantly help the government increase stamp duty revenue. This move is seen as inexplicable and will inevitably lead to a sharp decline in transactions of such luxury homes in the short term. It is believed that transaction volume may only be expected to rebound after 6 to 7 months, once the news gradually fades