Hong Kong’s 6.5% stamp duty will not stop luxury homebuyers from mainland China: analysts

The increase in stamp duty on ultra-luxury homes above HK$100 million (US$12.8 million) is unlikely to change buying behaviour, analysts said, as the structural forces underpinning demand from mainland Chinese buyers could outweigh the impact of the rise in transaction costs.The Hong Kong government, in the annual budget on Wednesday, increased the tax rate on residential transactions above HK$100 million to 6.5 per cent from 4.25 per cent amid a surge in demand for high-end property from mainland buyers.Property agents said the 2.25 percentage-point rise in transaction costs would not significantly impact mainland Chinese demand. They added that the authorities were likely seeking to prevent overheating before momentum accelerates further in the trophy-home segment.“The government saw a sudden increase in large-ticket transactions this year, which signals returning confidence,” said Louis Ho Siu-tong, senior associate director at Centaline Property covering The Peak and the Southern district. “They do not want prices to rise too quickly.”Financial Secretary Paul Chan Mo delivers his budget speech on Wednesday. Photo: Eugene LeeThe move came as mainland Chinese purchasers accounted for about 80 per cent of HK$100 million-plus transactions in prime districts this year, according to Centaline. A total of 48 such deals worth HK$10.4 billion were completed year-to-date as of Wednesday, Centaline said. There were a total of 262 transactions worth HK$53.1 billion in 2025.