HKREITA’s Concerns Over the Implementation of Progressive Rates on Car Parks

Hong Kong REITS Association (HKREITA) issued a letter to the Financial Services and the Treasury Bureau (FSTB) on 14 July 2025 to express concern regarding the recent imposition of progressive rates on car parks owned by one of our Founding Members (collectively Member Carparks) under the Rating (Amendment) Ordinance 2024 (Ordinance).

We are surprised by the classification of Member Carparks as en-bloc serving “domestic tenements” under the Ordinance, resulting in rates increase from 5% to 12%.  HKREITA respectfully requested a review of the applicability of the Ordinance to Member Carparks, and believed a broader policy-level dialogue is necessary to resolve the underlying issues and prevent unintended consequences of the progressive rates regime.

The letter can be viewed here.