Hong Kong developers speed up sale of empty flats as plans for vacancy tax gathers steam
Experts say the Hong Kong government will have to commit a lot of resources and will have to close every possible loophole for the tax to be effective
Last week, property agent Alvin Tai brought three clients to view four units on the 85th floor of the Cullinan luxury development near Kowloon MTR station that has been left unsold by the developer Sun Hung Kai Properties for more than 10 years, in the hope of closing deals that would fetch millions of Hong Kong dollars in commissions alone.
Most agents like Tai, Hong Kong Property’s point man for luxury homes in the Kowloon area, are excited as they could earn commissions of up to four per cent from selling new flats for developers, double the two per cent for used flats.
“Besides the price of these new flats is 20 per cent higher than used homes in the same building,” he said.
Average Hong Kong used home prices soar to record US$1.28m
A 1,481 square foot flat that is on the market for HK$100.66 million – a record in terms of price per square foot in this building – will bring at least HK$2 million in fees to any agent who clinches this massive deal.
SHKP still holds 30 unsold units at the 625-unit Cullinan.
Will Hong Kong developers who hoard flats trigger a vacancy tax?
Across the harbour, Wheelock Properties said the remaining 17 unsold units at its 170-unit Island Residence in Sai Wan Ho would be released for sale soon.
Wheelock, however, maintains that the release was part of their planned schedule.
