Hong Kong strengthened a yearlong effort to prevent increases in home prices through additional taxes and larger down payments. This came one day after the International Monetary Fund warned that asset inflation may damage Hong Kong’s economy.
Financial Secretary, John Tsang, said that homes sold within a half a year of purchase will have to pay a 15 percent duty stamp after Nov. 20. The required down payments for houses costing HK$12 million ($1.5 million) or more will increase from 40 percent to 50 percent. A stock gauge of Hong Kong developers fell for eight days out of nine before the announcements.