12/6/2018-8

One-handed building vacant tax

The government intends to introduce a vacant one-handed building tax. I think of a question that many developers should have thought of, but for the time being there have been no written questions.

It is said that the current real estate development projects are very expensive, with more than 10 billion yuan being the starting jump figure. Hong Kong also has many small-scale developers. The total assets of the entire company are only several billion yuan. These small-scale developers are not satisfied with the sale of real estate, so they cherish their goods and squeeze out like toothpaste.

Another reason is that listed companies must maintain stable profits, but there are not many real estates available. If they are sold out, there will be no new real estate for sale next year, and profits will not be realized. Therefore, a property sold for several years, and sometimes does not mean to hoard, just for the accounting account to look good, is a last resort.

Besides, if you ask a large group of employees to come back and get food for a month, you will not be able to work for them for several months, and then stop working for a couple of years. Although, the realization of many employees in the real estate sales department is very busy. A few months, but it will be better to stop for a few months than to stop for a year or two!

Large developers play goods such as rotation will only a small amount of hoarding

In this regard, several large-scale developers will not be affected by the large number of people, because they have a lot of real estate, and they have been playing with goods such as rotation. Even if the market is poor, they will only make a small amount of hoarding because of the withdrawal of funds. Therefore, the vacant tax will only affect small-scale developers.

I certainly have no compassion for small-scale developers. In fact, I have also written articles and criticized the government for granting small plots of land to meet the small financial resources of small developers. I do not know that the people of Hong Kong actually prefer to live. In large housing estates such as Tai Koo Shing and Mei Foo San Tsuen, small-scale lands actually make it impossible to use land resources efficiently.

In my opinion, land resources should be based on the most efficient use of the principle. We should not think about what big developers are doing in the future. We should divert all interests to the small and medium-sized developers…. In short, vacant taxes are small. The impact of the developer’s account, as if no one had spoken before, is merely an objective statement of facts.