KUALA LUMPUR, Oct 20 (Bernama) -- Bursa Malaysia’s benchmark index edged higher at the close as bargain hunting emerged following Monday’s sharp sell-off, although it narrowly failed to reclaim the 1,600 level, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 3.83 points, or 0.24 per cent, to 1,599.58 from Monday’s close of 1,595.75. The index opened 3.18 points lower at 1,592.57, marking its intraday low, and reached an intraday high of 1,602.83 in early trading. On the broader market, decliners outnumbered gainers 751 to 331, while 499 counters were unchanged, 1,259 untraded and 10 suspended. Turnover rose to 2.86 billion units worth RM2.42 billion against Monday’s 2.49 billion units worth RM2.38 billion.
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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