Like Tree10Likes

Govt Proposes Vacancy Tax on Apartments

Closed Thread
Page 2 of 4 FirstFirst 1 2 3 4 LastLast
  1. #11

    Join Date
    Aug 2008
    Location
    猴山
    Posts
    23,652
    Quote Originally Posted by shri:
    "Developers should be free to sell whatever they want, whenever they want and optimize their profits appropriately."
    But they can only sell what the government allows them to sell. It is far from a free market with no 'real' downside risk. A market with no downside risk for government friendly corporations is not a free market but a corporatocracy.

  2. #12

    Join Date
    Dec 2002
    Location
    薄扶林
    Posts
    47,964
    Quote Originally Posted by East_coast:
    A market with no downside risk for government friendly corporations is not a free market but a corporatocracy.
    That is what has earned HK its top spots in the free-market rankings. Why mess with what works?

  3. #13

    Join Date
    Sep 2012
    Location
    香港
    Posts
    1,162

    Any reliable statistics on the number of vacant properties overall? I hear rumours about "whole blocks bought out by the pesky mainlanders as investment to park bribe money, standing empty for years" - true/false?


  4. #14

    Join Date
    Aug 2008
    Location
    猴山
    Posts
    23,652
    Quote Originally Posted by orel100x:
    Any reliable statistics on the number of vacant properties overall? I hear rumours about "whole blocks bought out by the pesky mainlanders as investment to park bribe money, standing empty for years" - true/false?
    None. Estimated to be 2.5% - 5%

  5. #15

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,317

    Not sure what anyone can accomplish with a vacancy tax. Firstly--are people not entitled to own two homes ? Can they live in both or have a weekend home, as I know some do have to get away from the city.

    I haven't seen that many vacant residential units. If anything it's the developer whose hoarding properties for 10-20 years until the price hits a magic number. When land is sold, the government should require developers to disclose the timeframe for selling majority of the project and 100% of the project then add a tax. My estate still had unsold units and I bet the developer will hold them for another 20-30 years too. But I don't mind less people either.

    The main issue with vacant properties probably links more towards commercial flats! Well at least these we see more often. There are some old vacant buildings--not sure what's going on with those either.


  6. #16

    Join Date
    Oct 2007
    Posts
    1,896
    Quote Originally Posted by East_coast:
    It is either fear or favour.
    Given the ability of Xi to generate fear, I feel we can dispense with favour for the time being.


    Would this only apply to developer's unsold stock (which likely is a drop in the ocean) or privately held units kept empty for speculation purposes / AIrBnB (which I guess to be much higher)?

  7. #17

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,317

    Airbnb units are merely thousands of units. Henderson might have several thousand units unsold at one of their estates times how many unsold estates! Long Beach in Olympic is a perfect example.


  8. #18

    Join Date
    Mar 2009
    Location
    Hong Kong
    Posts
    2,260

    There should absolutely be a tax on those who use property as a business.

    There is a difference between someone who rents out a second flat on Airbnb and someone who owns about 5 properties which are vacant or a property developer not selling thousands of flats when the demand is there.


  9. #19

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,317

    It's called taxes on rental!! Do you propose more taxes? Then I shall raise your rent to make up for it.


  10. #20

    Join Date
    Mar 2009
    Location
    Hong Kong
    Posts
    2,260
    Quote Originally Posted by MandM!:
    It's called taxes on rental!! Do you propose more taxes? Then I shall raise your rent to make up for it.
    From what i gather, vacancy tax is not a rental tax. It is taxes on vacant properties where the owner does not sell or rent out.

    The tax just needs to be high enough that it doesn't make sense for them to leave it vacant. That should then increase the supply for rent or for sale.