admin Posted on 8:43 pm

The real estate market in Hong Kong today

Now that Hong Kong is a Special Administrative Region of China, its star is rising as fast as China and all of Hong Kong’s real estate sector is benefiting.

Hong Kong’s physical geographic restrictions mean that there is a finite supply of residential and commercial real estate available for sale and rent; And as Hong Kong further strengthens its already strong economic, trade and investment ties with China, demand for real estate in the region is intensifying.

Competing for space are multinational companies and their huge base of expatriate employees, local businesses and local residents, tourists and students. In fact, the demand for residential and commercial space in Hong Kong is today at its highest level since the glory days before 1998. Having suffered a sharp recession from 1998 to 2003, property prices are for sale at deflated costs and , therefore, are considered to be undervalued, which means that the real estate market is in a great position right now to grow and expand.

Because the demand for real estate in Hong Kong is so intense…

Because Hong Kong’s economy is booming…

Because the internal purchasing power is so strong…

And because the real estate market is believed to be currently undervalued, the sheer number of profit opportunities in the Hong Kong real estate market right now is intense.

Property investors around the world are buying into the projected growth period and are committing substantial funds to the Hong Kong market. As for the restrictions placed on foreign investors, they don’t exist in Hong Kong…in theory, anyone can buy property. As with all city-based real estate economies, property in Hong Kong, while currently considered undervalued, cannot be considered “cheap”. However, anyone looking to enter the market can obtain mortgages locally in Hong Kong to purchase and can almost guarantee the rental income they will generate if they choose to purchase residential or commercial units for rent.

The medium-term outlook for the Hong Kong real estate market is good, with analyzes showing that the number of renovation projects and new developments started in recent years is below what is necessary for the current level of demand. This insufficient supply will last at least the next four years according to the analysis of industry experts. This has led to predictions of property price growth of up to 12% per year for at least the next four years, making the Hong Kong property market a very attractive prospect today.

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