Home demand helps developers clear housing stock before Hong Kong slaps vacancy tax on hoarders

Hong Kong’s property buyers braved a downpour to snap up more than a hundred unoccupied apartment units and hundreds of park lots around the city, helping developers clear the unsold stock ahead of a government plan to impose a so-called vacancy tax to deter hoarding.

As many as 119 units across the city, or 68 per cent of the 176 flats put on offer by four developers, were sold on Saturday, according to agents. Wheelock Properties sold all 107 of its parking spaces and 24 motorcycle parking lots at the Monterey complex in Tseung Kwan O for a combined HK$255 million.

In Yuen Long in the New Territories, New World Development sold 25 of the 38 units at Park Villa, recording HK$1.12 billion (US$143 million) in sales, according to the developer.

Unit 29 of Park Villa, measuring 3,844 square feet, was sold to the family of Tse Sui-luen, the founder of the TSL Jewellery chain in the city, for HK$46.55 million, agents said. Tse could not be reached to comment.

The weekend sale at Park Villa, more than five years after occupation permits were issued in 2013, underscored the effectiveness of the government’s tax to force developers to release more housing stock to ease the pent-up demand in the world’s costliest residential market, said lawmaker Kenneth Leung.

“The aim of [residential property] development is to provide Hong Kong people with flats,” Leung said.