The worst is likely over for the luxury property segment globally, with prime home prices set to rise more than previously anticipated, according to a report by Knight Frank.
However, the fortunes of the high-end segment in Singapore and Hong Kong are likely to move in opposite directions due to the divergent property policies in the rival Asian hubs.
Hong Kong’s prime home prices are likely to see an increase of 0.5 per cent next year following the city’s easing of some of its decade-old property curbs, according to the consultancy’s Global Prime Residential Forecast.
Prices in Singapore are expected to retreat by 0.5 per cent in 2024, as the city is one of two in the list of 25 tracked by Knight Frank likely to record a price decline. Edinburgh in Scotland could see a price drop of 3 per cent.
Prime property prices have lost about 2 per cent this year in Hong Kong, while in Singapore they have increased by about 5 per cent.“Singapore has ramped up stamp duty for non-residents taking total purchase costs to around 60 per cent, [while] Hong Kong has moved in the opposite direction,” said Everett-Allen.
In October, Hong Kong’s Chief Executive John Lee Ka-chiu eased property restrictions in his second policy address, including halving buyers’ stamp duty to 7.5 per cent for non-permanent residents and residents buying a second or additional homes.
The special stamp duty of 10 per cent has also been waived for homeowners who resell their property after two years, from the previous three-year requirement. Eligible overseas professionals are also not required to pay stamp duty on home purchases unless they fail to become permanent residents.
