June 29, 2018 / 9:18 AM / 10 months ago

Hong Kong set to impose vacancy tax on empty new flats

HONG KONG, June 29 (Reuters) - Hong Kong proposed a vacancy tax on empty new homes on Friday in an attempt to discourage developers from hoarding, but analysts expect the measure to have little impact on prices in the world’s least affordable property market.

The tax, at 200 percent of a newly built unit’s rateable value, will need to be approved by the city’s Legislative Council, Chief Executive Carrie Lam said. The policy will not be applied on resold flats.

Hong Kong has one of the least affordable housing markets in the world and private home prices have been on a record-breaking run for 19 consecutive months, fuelling discontent among residents.

Reporting by Venus Wu; Editing by Anne Marie Roantree

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