This article outlines the 2025 Hong Kong property market, detailing stamp duty rates, mortgage loan policies, and incentives for newcomers, based on updates from the Inland Revenue Department and Hong Kong Monetary Authority.

To stimulate activity in the Hong Kong property market, the government has removed several stamp duties, making homeownership more accessible. The 2024-25 Budget eliminated demand-management measures, creating a buyer-friendly environment for purchasing property in Hong Kong.

AVD is the primary duty on property transfers in Hong Kong, calculated on the higher of the purchase price or market value. Since February 28, 2024, all residential transactions in the Hong Kong property market follow the progressive Scale 2 rates, simplifying costs for buyers. The rates are:

Non-residential properties also follow Scale 2 rates since November 26, 2020. Agreements for sale are stamped at these rates, with subsequent conveyances attracting a fixed HK$100 duty if the agreement was stamped.

• Buyer’s Stamp Duty (BSD): Initially a 15% levy on residential purchases by non-Hong Kong permanent residents, reduced to 7.5% from October 25, 2023, BSD was fully suspended for transactions after February 27, 2024. All buyers now pay only AVD at Scale 2 rates, making it easier to buy property in Hong Kong.
• Special Stamp Duty (SSD): Previously applied to resales within short holding periods (10% to 20% for properties held less than 36 months), SSD was reduced to 0% since February 28, 2024, enhancing flexibility in the Hong Kong real estate market.

Exemptions apply for intra-group transfers of associated companies, subject to IRD approval. Explore our Hong Kong property listings to find your dream home in areas like the Mid-Levels.

The HKMA regulates mortgage lending to ensure stability while offering favorable loan-to-value (LTV) ratios for buyers in the Hong Kong property market.

• Unified LTV Ratio: Since October 2024, a 70% LTV ratio applies to all residential properties, regardless of value, usage (self-occupied or investment), or borrower type, up from previous tiered caps (50-70%) and 60% for investment properties.
• Non-Residential LTV: Capped at 60% for commercial or industrial properties, such as office spaces in Central.
• Loan Tenors: Up to 30 years for residential properties and 25 years for non-residential, with stress tests ensuring repayment capacity under a +2-3% interest rate hike (current prime rate ~5.875%).
• Mortgage Insurance Programme (MIP): Offered by the HKMC, it allows banks to exceed 70% LTV by insuring the excess portion, with financeable premiums based on LTV, tenor, and coverage.

First-time buyers—Hong Kong residents with no prior residential property ownership and regular salaried income—benefit from tailored incentives to ease entry into the Hong Kong property market.

• High LTV Ratios: Through the MIP, first-time buyers can access up to 90% LTV for properties valued up to HK$10 million (or 80-90% with loan caps for HK$10-11.25 million), reducing down payments to as low as 10% (e.g., HK$800,000 for an HK$8 million flat).
• Tax Benefits: Up to HK$100,000 annual home loan interest deduction under salaries tax for 20 years, easing ongoing costs for Hong Kong homeownership.

With relaxed stamp duties and favorable mortgage options, Hong Kong’s 2025 property market offers an inviting environment for homebuyers. First-time buyers in Hong Kong benefit from high LTV ratios and tax incentives, making vibrant areas like the Mid-Levels more accessible. High interest rates and economic factors require careful planning, but the market is ripe for opportunity.

Contact our team at Jade Land Properties today for personalized assistance or to explore exclusive listings tailored to your Hong Kong homeownership goals.