After the new Budget was released, the author received many inquiries from customers, whether they were first-time homebuyers or those who were downsizing. Among them, there are several measures that are required for buyers who intend to apply for a mortgage to enter the market. pay attention to. Because under the comprehensive "elimination" arrangement, the entire calculation involved in buying a house is different from before, so buyers also need to make adjustments in calculating their budget for buying a house. However, overall, under the new measures, it is much easier to buy and exchange properties, and it will help stimulate the current tired trading atmosphere in Hong Kong's property market.
First, let me talk about the three measures that have the most direct impact on house-switchers.
The first is the stress-free test arrangement. In the past, if a buyer wanted to buy a property before selling it, one of the more influential considerations was the need to pass a stress test.
Reduce the burden of entering the market
Now that the stress test has been suspended, only the requirement that the applicant's contribution-to-income ratio must not exceed half. In disguise, the threshold has been lowered, making it easier to change properties.
Another measure is to relax mortgage loans. If the price of a self-occupied property rises to NT$30 million or below, a mortgage of up to 70% can be obtained; while for a property priced between NT$30 million and NT$35 million, a mortgage of up to 60% to 70% can be obtained.
Property prices above NT$35 million can result in a mortgage of up to 60%, with the disguised amount limit being significantly increased and the mortgage ratio increased by 10%. This measure will not only stimulate the transaction of luxury homes, but also provide a wider range of properties for home buyers to choose from.
The third measure is naturally to relax tax collection. This measure is also beneficial for buyers who have purchased properties in recent years and want to change properties, or for buyers who are new to the market.
Before the implementation of the new measures, owners who had held the property for less than two years and wanted to resell it had to pay additional stamp duty (SSD). As a result, buyers were unable to sell the property in time even if they saw a correction in property prices after holding the property.
Coupled with the uncertain outlook for the property market, buyers are even more deterred from entering the market.
Under the new measures, buyers no longer need to worry about being "locked out" and can handle properties more flexibly, which will help buyers increase their confidence in entering the market.
For property buyers, although in the past they could apply for a refund of stamp duty after completing another level of transaction, they can now avoid the complicated procedures.
Help stimulate trading atmosphere
Taking the entire budget into consideration, it is obvious that the government hopes to regain confidence in the market, promote the overall trading atmosphere in the property market, and activate the capital chain of the property market.
After all, when the trading atmosphere is weak, it will be difficult to mobilize asset turnover even if property buyers intend to change properties.
Now that all restrictions have been lifted, in addition to releasing the purchasing power of first-home buyers and downsizers, it will also help encourage corporate customers or non-Hong Kong permanent residents to enter the market.
Since buyers no longer need to pay expensive stamp duty, these measures will help stimulate the property exchange chain in the property market.
As for whether it can bring property prices back on track? The author is taking a wait-and-see attitude on this, because the supply of both primary and secondary properties in the property market is still very large.
The author believes that if the property market sentiment does not see a significant long-term improvement after the government completely withdraws from the market, property prices will fall further, and the correction will be deeper than this time.