New Tax Policy Pushed Hong Kong Residents to Purchase Properties in Shenzhen
Hong Kong residents turned to the Shenzhen housing market after a new stamp duty was implemented in the special administrative region last month. A number of Hong Kong residents are seeking properties in Shenzhen have increased by 20 percent and the property turnover have also grown by ten percent since November 1st.
According to a Hong Kong based real estate agency they receive an average of 40 groups of Hong Kong residents that are seeking residential properties in Shenzhen just before the new tax policy was announced in October. The company also said that they have also showed 50 groups of people around several Shenzhen properties seeking for home purchases to act as investments five days after the tax announcement was made.
The new tax policy may cause a tax influx of cash to Shenzhen and the housing market in the city could benefit from it. It showed that Hong Kong buyers are preferring to purchase apartments or homes that are worth 1 million yuan to 2 million yuan in Futian, Nanshan and Luohu. And most of this buyers have several properties in Shenzhen and in fact subjected to the property purchasing policy that was adopted by the city in 2010. In which the policy stated that non mainland residents can only own one residential property in Shenzhen, and overseas companies that that branches in Shenzhen can purchase multiple non residential properties.