For the sixth straight year, the Hong Kong property market has earned the title as the most expensive in the world. According to a survey of 367 cities by the annual Demographa International Housing Affordability Survey, Hong Kong has the priciest homes in the world, surpassing Sydney and Vancouver. In fact, average Hong Kong property prices are 19 times residents’ gross annual average income. This price to income ratio is the least affordable average ever recorded.
An aerial view of the city of Hong Kong at night
China Huarong Marks Entry in Hong Kong Property Market
While it’s no secret that a Hong Kong property is out of reach for many residents, it hasn’t stopped developers from building luxury condominiums to satiate overseas property investors. One company adding another project to the Hong Kong property market is China Huarong Asset Management. It’s a mainland China-based financial asset management firm that’s capitalizing on the demand for Hong Kong real estate among mainland buyers. This move is the company’s first foray into the Hong Kong property market as well as the first outside China. Through its property unit Huarong Real Estate, their first development will be a luxury residential tower on Mosque Street in Mid Levels West.
Huarong Real Estate purchased the Mosque Street site “from a joint venture between Soundwill Holdings and Eagle Fund in June for HK$820 million or 16,532 per square feet.” In a South China Morning Post article, it was revealed that the 49,000 square foot luxury tower will cost more than HK$1 billion. This amount comprises construction and land costs.
Who’s Investing In Hong Kong Real Estate?
With the surge of properties being snapped up by investors from mainland China, it comes as no surprise that the said property will most likely be marketed towards buyers in mainland China. During the second quarter of 2016, one of five luxury homes purchased were sold to buyers from mainland China. This motivation to snap up Hong Kong properties can be owed to Chinese investors’ desire to expand their assets because “mainland governments are imposing property measures to cool the sizzling property market.”
An overseas property investment in Hong Kong may be an unsure move at the moment but that doesn’t mean you can’t check out what the housing market has in store for you. Check out our blog for exciting property news, overseas buying guides and helpful reviews about prime Asia properties.