The murder of model synchronized Choi (Thai Thien Phuong) is a shocking case across Hong Kong - a place famous for its safety and low crime rate.
The reason for the 28-year-old Hong Kong model's murder is believed to be related to the luxury apartment she bought under the name of her ex-father-in-law.
When Abby intended to sell a nearly 170m2 apartment for more than 70 million Hong Kong dollars ($8.9 million) at the end of 2019, her ex-husband's family objected.
To the shock of local people, the murderers are said to have used the traditional slow-cooked soup recipe of Quang Dong to dispose of Abh Choi's body.
According to Bloomberg, the unfortunate death of the female model shows the dark side of the Hong Kong real estate market.
The Hong Kong real estate market is one of the most expensive markets to trade if you are a foreigner or a second home buyer.
Notably, there are different taxes that the Hong Kong government calculates on real estate. In 2016, in an effort to curb spikes in housing prices, Hong Kong raised the registration tax on those who do not have to buy a home for the first time to 15% and imposed a tax on the remaining people at 4.25%.
With a tax bill worth more than 7 million Hong Kong dollars (about 891,000 USD), Abby Choi - who already has another luxury apartment in Hong Kong - has named her ex-father-in-law as the official owner of this nearly 170m2 apartment. And it seems that the trust has been put in the wrong place.
The entire 15% registration tax does not only affect the extremely rich in Hong Kong. After the global financial crisis, those who want to save for retirement realized that they have few options. Bank deposit interest rates are too low, while the stock market does not tend to increase as healthily as in other places.
Meanwhile, Hong Kong homeowners who want to invest in real estate are sluggish ahead of the 15% cut-off tax rate. The alternative is to have relatives or close friends call the house and that opens up the possibility of conflict or abuse later.
Therefore, Abby Choi's tragic conclusion raises the question of whether a high registration tax for second homes - a policy that has been in place for more than 6 years - needs to be reconsidered.
The speculativecrazy has disappeared. After 13 years of capital increase, Hong Kong housing prices have decreased by 15.6% last year. Meanwhile, the double impact of interest rate increases and the wave of migration of people, the prospects for this year are still unclear. This is considered the reason why Abby Choi wanted to sell the 170m2 apartment bought at the end of 2019 as an investment and the female model simply wanted to cut losses.
In Hong Kong, the cost of selling apartments has gradually decreased after 3 years of ownership.
Hong Kong's expensive real estate market is a big problem, but Hong Kong Special Zone Commander Li Gia Sieu seems to have found a solution, according to Bloomberg.
He is stepping up the development of public housing, pledging to reduce waiting time for families who want to buy a house from 6 years to 4.5 years in 2027.
Last week, the Hong Kong government cut registration fees for low-cost houses. This is the right time because Hong Kong real estate developers are selling many new apartments this year. Some real estate development units have reduced prices to increase sales.
According to Bloomberg, while Hong Kong can support the middle class with the above policy, cutting transaction costs for second- home owners is also a move forward.
As COVID-19 is falling behind and Hong Kong wants to rebuild its reputation as a prominent financial center in Asia, reducing real estate fees is a start.
