Good Potential for Property Investment in Hong Kong
A leader among the world’s financial capitals, Hong Kong is also one of the most densely populated countries in the world. With space at a premium on this small administrative territory part of mainland China, property is, not surprisingly, one of its most sought-after commodities.
Popular with relocators, the Hong Kong property market is also a favourite with investors, particularly the luxury residential sector in the territory’s many high-end districts such as The Peak and Island South. However, Hong Kong’s economy and by extension, its property market, have been very affected by the global economic recession. House prices generally have fallen around 25% since spring 2008 when they peaked and many property analysts expect a similar decrease this year.
According to CB Richard Ellis Hong Kong, prices for luxury properties on Hong Kong Island experienced a year-on-year decrease of 19.2% in Q4 2008 and the average unit rate is now around HK$36 per square foot. In the face of falling prices, many vendors have decided to let their homes rather than sell, although the rental market currently mirrors the property market with rental rates falling 20% since December.
However, as is the case in many countries at the moment, falling house prices mean there is potential for opportunistic property investment in Hong Kong. In response to the slowdown in the property market, many developers are choosing to postpone the completion of new complexes, which further limits the supply of available housing in the territory.
Reflecting the potential for bargains, Q4 saw increased buyer interest and according to CBRE Hong Kong, some developers reported a good response from buyers to the launch of new projects. However, the main sentiment dominating the overall Hong Kong market is currently one of expectation as potential investors wait for prices to fall further before they commit to a purchase.
“The current Hong Kong property market very much resembles the situation at the moment in the UK, Spain and parts of the US,” says James Gonzalez, Market Analyst at Obelisk Investment Property. “Falling prices and low interest rates makes it a very attractive market for the investor, particularly those with ready funds. And the limited supply of property in Hong Kong also means there will always be demand, an essential consideration for property investment.”
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at www.absoluteguideseries.com
Email: info@obeliskinternational.com or visit our website: www.obeliskinvestmentproperty.com
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com
Popular with relocators, the Hong Kong property market is also a favourite with investors, particularly the luxury residential sector in the territory’s many high-end districts such as The Peak and Island South. However, Hong Kong’s economy and by extension, its property market, have been very affected by the global economic recession. House prices generally have fallen around 25% since spring 2008 when they peaked and many property analysts expect a similar decrease this year.
According to CB Richard Ellis Hong Kong, prices for luxury properties on Hong Kong Island experienced a year-on-year decrease of 19.2% in Q4 2008 and the average unit rate is now around HK$36 per square foot. In the face of falling prices, many vendors have decided to let their homes rather than sell, although the rental market currently mirrors the property market with rental rates falling 20% since December.
However, as is the case in many countries at the moment, falling house prices mean there is potential for opportunistic property investment in Hong Kong. In response to the slowdown in the property market, many developers are choosing to postpone the completion of new complexes, which further limits the supply of available housing in the territory.
Reflecting the potential for bargains, Q4 saw increased buyer interest and according to CBRE Hong Kong, some developers reported a good response from buyers to the launch of new projects. However, the main sentiment dominating the overall Hong Kong market is currently one of expectation as potential investors wait for prices to fall further before they commit to a purchase.
“The current Hong Kong property market very much resembles the situation at the moment in the UK, Spain and parts of the US,” says James Gonzalez, Market Analyst at Obelisk Investment Property. “Falling prices and low interest rates makes it a very attractive market for the investor, particularly those with ready funds. And the limited supply of property in Hong Kong also means there will always be demand, an essential consideration for property investment.”
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge at www.absoluteguideseries.com
Email: info@obeliskinternational.com or visit our website: www.obeliskinvestmentproperty.com
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com
posted by Alison Kane at 3:59 pm
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