Honk Kong Budget: Land and Property Market Policy Made Simple
At 11 am today (22nd), the Financial Secretary, Chen Maobo, presented the first budget of the current government at the Legislative Council Chamber. Chen Maobo stated that this year’s issuance of consumer vouchers will be halved to RMB 5,000 and disbursed in two installments.
Furthermore, the ceiling for salaries tax and personal assessment tax reduction for the assessment year 2022/23 will be 100%, with a maximum of $6,000, which is lower than the $10,000 cap for 20/21 and 21/22.
Moreover, individuals who qualify for social security benefits, such as CSSA, Old Age Allowance, Old Age Living Allowance, or Disability Allowance, will receive an additional “half-pay” of half a month’s social security benefits from the government.
Lastly, the public transport fee subsidy program will be extended for six months until the end of October this year. Moreover, each eligible residential user account for electricity will receive an electricity fee subsidy of 1,000 yuan.
The land sales strategy and supply targets for the upcoming year indicate that land price revenue will reach approximately 85 billion yuan, experiencing a growth of around 20% compared to last year’s revised budget. It is also anticipated that stamp duty revenue will increase by 27% from the previous year’s revised budget, generating 85 billion yuan.
In contrast, land premium income witnessed a significant drop from 48.9 billion yuan, falling to 71.1 billion yuan due to a decrease in land transaction prices and the cancellation of some land sales plans. Stamp duty revenue experienced a more significant fall, declining by 46 billion yuan from the initial budget of 67 billion yuan. This was mainly because of the poor performance of the property and stock markets, along with a decrease in transactions.