Hong Kong’s chief executive, Leung Chun-ying, has warned that the government might introduce a tax on new, vacant properties, to prevent developers hoarding them for resale at higher prices, a media report on Tax-News.com said.

During a radio recent interview, Leung said the government will act if there is evidence of properties being held back by developers purely for their profit. He stressed that property is sold to developers, so as to produce homes and reduce their current shortage for Hong Kong’s residents.

The warning comes after further measures to cool Hong Kong’s escalating property prices have been announced, such as a new buyers stamp duty and raised levels of the special stamp duty levied on properties resold within 24 months of purchase.

According to the report, a construction completion date is specified in development land leases, but property developers are not restricted by any stipulation on when the sales of the new flats must be held. There are, presently, 4,000 unsold new flats, and a 4 per cent overall vacancy rate, in the private sector. It is said that, of the 6,100 flats built by the private sector last year, 2,000 remain unsold, while, of the 9,400 flats built in 2011, 1,000 are still vacant.

The report said it is likely that the tax would be levied as a percentage of a flat's rental value, adding that in order to be effective, it would need to be greater than the developers' prospective investment return.

However, critics of the prospective levy said it is another example of movement away from a laissez-faire economy and could encourage developers to sell flats immediately, to reduce future interest in development applications, the report said.