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Hong Kong Could Halt Plan for Vacancy Tax on Apartments

  • Developers could have faced prison time and expensive tax
  • Vacancy rate for new homes went down in 2019 from 2018
China Security Law Is Latest Worry for Hong Kong Developers
Photographer: Roy Liu/Bloomberg

The Hong Kong government is considering suspending a plan that would have introduced a vacancy tax on new housing stock, the Transport and Housing Bureau said.

The reconsideration was prompted by community feedback and the state of the economy, a bureau spokesperson said. Hong Kong has been battered by last year’s anti-government protests and the coronavirus pandemic, with the government forecasting a contraction of as much as 8%.