KUALA LUMPUR, May 21 (Bernama) -- Bursa Malaysia ended at its intraday low on Thursday as investor sentiment remained cautious amid ongoing foreign outflows, although the recent weakness may present bargain-hunting opportunities in fundamentally sound blue-chip counters. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 9.33 points, or 0.54 per cent, to 1,708.36, from yesterday’s close of 1,717.69. The benchmark index, which opened 3.74 points higher at 1,721.43, hit an intraday high of 1,722.50 in early trade before losing momentum for the rest of the day. Market breadth was negative, with losers outpacing gainers 656 to 508, while 565 counters were unchanged, 989 untraded and 32 suspended. Turnover fell to 3.49 billion units worth RM3.70 billion compared with 4.15 billion units worth RM4.29 billion on Wednesday.
Quick Summary
Stamp duty for homes above HK$100m raised to 6.5% (from 4.25%)
Targets only 0.3% of transactions
Luxury sales surged in late 2025
Home prices rose 3.3% in 2025, first annual gain in four years
What Changed?
Hong Kong will increase stamp duty on luxury residential properties valued above HK$100 million to 6.5%, up from 4.25%, according to Financial Secretary Paul Chan.
The measure:
Takes effect Thursday
Still requires Legislative Council approval
Expected to generate around HK$1 billion annually
The policy mainly affects the ultra-luxury segment, accounting for just 0.3% of total transactions.
Why Now?
The move comes after a strong rebound in high-end sales:
81 deals above US$10 million in Q4 2025 — the highest since late 2021
Home prices rose 3.3% in 2025, ending a four-year decline
Luxury momentum has been driven by:
Renewed investor confidence
Improving economic outlook
Expectations of further price gains
Wall Street firms such as Citigroup Inc. and Morgan Stanley forecast further price increases in 2026.
Developers Benefiting
Developers have capitalised on the rebound.
For example, Swire Properties Ltd recently sold a pair of luxury mansions for HK$2.2 billion.
Policy Objective
The government aims to:
Capture additional revenue from high-value transactions
Cool speculative activity at the top end
Avoid disrupting the broader housing recovery
By targeting only ultra-luxury homes, the measure avoids pressuring mass-market buyers.
Bottom Line
Hong Kong’s luxury property revival is strong enough to justify higher taxes at the top end.
With prices rising and high-value transactions accelerating, the government is taking a selective tightening approach — boosting fiscal revenue while keeping broader market momentum intact.
Key Takeaways
Luxury stamp duty raised to 6.5%
Minimal impact on overall market volume
High-end property demand resurging
Developers benefiting from renewed buying interest
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