Here's how market reacts over latest property measure

3 in 5 mainland buyers are not purchasing homes in the next few months.

One week after the introduction of the Buyer Stamp Duty and the extension of the Special Stamp Duty, the market is gradually reacting to the new measures. Below is Nomura's collection of some of the feedback from buyers, developers and the Real Estate Developers Association (REDA).

• Midland China polled 229 mainland buyers and found that 62% would not consider buying a flat in Hong Kong within half a year after the new BSD was announced. A further 3% indicated they would no longer consider buying a home in the city. However, the remaining 35% would consider entering the market, but depending on price movements. Midland further estimated that the number of mainland buyers coming to view flats in Hong Kong was down 90% after the new measures were announced. (Source: SCMP, 2 November 2012)

• On the developers side:

– Sino Land indicated that the cooling measures would not affect its schedules of new flat sales and land acquisition. At this point, it is still too early to tell what impact BSD would have on the market.

– Henderson Land admitted that BSD would affect its pace of acquiring old buildings for redevelopment and a wait-and-see approach would be adopted. It has been discussed that buyers of redeveloped flats could be exempt from the BSD if the developer is able to redevelop the building within a certain period. Henderson Land further suggested that the government carefully set a time period for redevelopment projects. It could take developers two years to handle the construction work on foundation and slope.

– The SCMP reported that Cheung Kong is offering a 15% discount on its remaining flats at the Uptown in Yuen Long. This will effectively offset the impact from BSD. (Source: SCMP, 1 November 2012)

• Lastly, the REDA suggested to the government that luxury properties be exempt from the BSD. This includes units larger than 3,000sf or those above HKD50mn as the high- end sector is more appealing to mainland buyers and does not reflect local end-user demand. Also, the REDA urged the government to clarify the details on BSD exemption for redevelopment projects. (Source: HKET, 2 November 2012)