16/10/2018-9

Luxury homes need time, vacant taxes, increase costs

The peak of the Wenhui Road land mark ended, and the developers who entered the bid mentioned that the vacant tax announced in this year had a great impact on the first-hand luxury home, which inevitably affected the bids of the developers when they invested in the land.

Only sold for several years, affected bids

When the Chief Executive, Mrs Lam, introduced the new housing policy in the middle of this year, it included a vacant tax on the first-hand flat. The vacant flats required to be vacant for more than one year were required to pay a 200% tax on the rateable value, which is equivalent to about 5 %. The market is generally convinced that this measure will hit the biggest new luxury market with slower sales, which in turn will affect the land price of luxury homes.

Yesterday, there were also developers who entered the tender for the luxury homes in Wenhui Road, referring to the impact of vacant taxes. Jia Wei International (00173) Wen Weiming, general manager of real estate business and marketing planning in Hong Kong, said that super luxury homes are generally more difficult to sell in the form of uncompleted flats. A luxury residential project will be sold from time to time and will take several years. Therefore, the developer will calculate the impact of the vacant tax into the bid of the investment site. The Government has not made the same consideration when calculating the reserve price, which will cause the official and commercial operators to fall in the assessment of the land price.

In fact, the location of the Wenhui Road luxury home will be positioned as a super-luxury project, with grades close to Wharf (00004) and Nanfeng Development’s new mountaintop MOUNT NICHOLSON. Although the price of the new disc is quite satisfactory, the price of the tiered unit is as high as 100,000 yuan, but the overall speed of pick-up is not particularly fast. It has been sold for more than two and a half years, about 70% of the units sold, and there are still 20 Many people are still waiting to be sold, and they will have the opportunity to be affected by the vacant tax in the future.