IMF backs Hong Kong's property cooling approach

However, it notes that the Buyer and the Ad-Valorem Stamp Duty should be replaced.

The International Monetary Fund has expressed support for the government’s policy approach to cool its heated housing market and encouraged authorities to intensify policy efforts to increase housing supply, according to a media release. 

“[IMF] Directors supported the authorities’ three-pronged approach to limiting risks in the housing market. They underscored that restoring balance in the housing market should be a policy priority,” according to a media release. 

They also noted that Hong Kong’s various macro-prudential measures have so far been effective in buffering the financial system from market shocks. 

IMF added that once housing market risks dissipate, the Buyer’s Stamp Duty and the Doubled Ad-Valorem Stamp Duty/New Residential Stamp Duty should be replaced with alternative measures.

The BSD is payable on an agreement for sale for the acquisition of any residential property whilst the AVD charges a flat rate of 15% for the sale, purchase or transfer of more than one residential property under one instrument.

Photo from International Monetary Fund - https://www.imf.org/external/np/adm/pictures/captions.htm, Public Domain.