One of the world’s fastest growing and dynamic city, Hong Kong is most likely to fall into an unique situation, where growth is slowing — amid sky-high property prices. Home prices have almost doubled in the past 4 years. There is a sense of a real estate bubble there and people are feeling less secure about their incomes. Hong Kong Housing Bubble – So is it plausible?
A typical two-room, 600-square-foot apartment on Hong Kong Island costs about HK$5.4 million, or HK$9,000 per square foot. An individual car parking space in Hong Kong was sold for $166,666, tycoon Li Ka-shing’s flagship Cheung Kong Holdings made $77 million over last weekend weekend, after it sold 514 car park slots.
To prevent a property bubble from bursting, the government imposed its toughest property curbs on Oct 26. Aside from slapping a 15 percent buyer stamp duty upon purchase of a residential property by non-local and corporate buyers, the government also raised a resale tax on residential property by 5 percentage points to make the tax as high as 20 percent.
This is how Hong Kong Looked Like 40 Years Ago (February 1972)!
[images via Nick DeWolf]
Many of Hong Kong’s foreign residents will have to think twice before buying a new home in this Asian financial hub.
- Hong Kong’s housing market is among the most expensive in the world.
- Buyers from mainland China who account for 20 percent of total market transactions
- House prices have climbed 20 percent so far this year.
- Sharp rise in 2012 house prices follow a 60 percent increase over the past decade.
- Hong Kong economy has expanded 1.3% in the 3rd quarter from the same period last year.
- Private median household income rose by 7.1 percent year-on-year in the second quarter.
Weak economic growth, oversupply and measures to keep a lid on house prices, now face a ‘day of reckoning’ after several years of robust gains, —- The Hong Kong Housing Bubble – is it plausible? Can home prices keep going up?