KUALA LUMPUR, May 11 (Bernama) -- Late selling pressure dragged Bursa Malaysia into negative territory at the close, reversing earlier gains as profit-taking in heavyweight banking and transportation counters dampen overall market sentiment. At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.75 points to 1,745.31 from Friday’s close of 1,748.06. The benchmark index, which opened 5.94 points firmer at 1,754.0, moved between 1,744.99 and 1,754.0 during the trading session. Market breadth was positive with gainers leading losers 562 to 558. A total of 636 counters were unchanged, 897 untraded, and 12 suspended. Turnover increased to 4.20 billion units worth RM3.17 billion compared with 3.31 billion units worth RM3.00 billion on Friday.
New Property Tax Reduction for Low-End Homes
- Hong Kong will cut stamp duty to HK$100 ($12.80) for homes valued at HK$4 million ($515,000) or below.
- Previously, transactions between HK$3M-HK$4M were taxed up to 1.5% of deal value.
- Finance chief Paul Chan announced the move in his 2025 budget speech.
Hong Kong’s Struggling Real Estate Sector
- Property prices have plunged 27% since 2021, nearing 2016 levels due to high borrowing costs, weak economy, and oversupply.
- Despite scrapping all extra stamp duties & relaxing mortgage rules last year, home prices still fell 5% in 2024.
- The latest tax reduction will benefit ~15% of all property transactions, according to government estimates.
Government’s Property Market Dilemma
- Hong Kong’s economy is heavily reliant on property revenue, making real estate stabilization crucial.
- Previous policy changes failed to stop the downturn, leading to this new tax cut targeting budget home buyers.
Summary:
- Stamp duty cut to HK$100 for homes under HK$4M to revive the housing market.
- Hong Kong home values have fallen 27% since 2021, struggling despite prior policy easing.
- Government expects the move to help 15% of transactions, but market recovery remains uncertain.
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