Hong Kong builders’ shares suffer from new tax that could stem foreign real estate investment

Hong Kong has imposed a 15% purchase tax on non-local and corporate real estate buyers in a bid to reverse soaraway home prices. Foreign investment, particularly from mainland China, is popularly blamed for inflating the real estate bubble. Yet Hong Kong has also followed North America in setting extremely low interest rates, encouraging locals to buy and flip real estate actively. Domestic monetary policy could be the real problem.