The government is today expected to take steps to cool the Hong Kong's overheating luxury property by acting against the speculators that it worries may be creating a housing "bubble".

In an opening salvo it is expected that stamp duty on sales of properties priced at more than HK$20m could be raised to 4.5% from the present 3.75%.

The move will be among several measures expected from Financial Secretary John Tsang Chun-wah in his budget speech today, while many hope he will also unveil plans to help people buy affordable homes.

But there is some doubt that higher stamp duties will have much impact on demand at a time the market is suffering a shortage of new units and when interest rates are low and cash is plentiful,

South China Morning Post