Demand for Hong Kong property still strong

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Exclusive Condo

New Member
According to several reports, properties in Hong Kong is consider the world's priciest and they have hold this title for 7 years
 
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FWL

Active Member
Hong Kong is an area of the world which always looks expensive but it is not a "traditional" place in terms of who lives there and average wealth. Comparing the price of property in Hong Kong to that anywhere else in the world is often like comparing apples and pears, useless.
 
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Morris Tower

New Member
Average HK people simply couldn't afford the current housing prices. Property prices in Hong Kong are now way exceeding affordability of local people.
 
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realdeals

Active Member
Hi @Morris Tower

Do you think investors are holding up house prices in Hong Kong if they are beyond the reach of the local population?
 
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Morris Tower

New Member
Hi @realdeals

Despite the fact that property prices in Hong Kong have been exceeding average local population's affordability for some times, given the seemily ever-increasing money supply in China and in Hong Kong and further given the prevailing low interests rate I doubt if the prices would go downward actually. Another thing is that Hong Kong is the only city in China which does not have foreign exchange control and having a separate legal system, it has been the most convenient location for the Chinese to harbour their wealth. Policywise, the government also has little incentive to really implement any measures which would drive down property prices in order to protect the interests of the business sector (after all, an authoritarian regime needs to be fed from income disparity for its life). Therefore, if the economy of China remains strong, it is not likely that property prices in Hong Kong would go downward; on the other hand, the bubbles will be burst at almost the same time when the economy of China’s economy bursts.
 
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Longterminvestor

Administrator
As you say, Hong Kong is a country within a country (in effect) but will we see laws, etc being brought into line with China in due course? If so, what impact would this have on the Hong Kong property market - which is itself very very different from the property market of China.

I know the handover from the UK included clauses confirming no changes in laws, etc for a set period of time. Is the Chinese government abiding by these terms?
 
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