KUALA LUMPUR, Feb 11 (Bernama) -- Bursa Malaysia ended higher today as buying on selected blue chips continued, said a brokerage. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 8.85 points or 0.51 per cent to 1,756.39 from Tuesday’s close of 1,747.54. The barometer index opened 3.69 points higher at 1,751.23 before moving as low as 1,745.51 in early trade to as high as 1,757.15 during the mid-afternoon session. Market breadth was positive with gainers leading losers 575 to 474, while 549 counters were unchanged, 1,087 untraded and 11 suspended. Turnover expanded to 2.55 billion units valued at RM3.06 billion from yesterday’s 2.19 billion units valued at RM2.35 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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