1.

Residential property prices in Hong Kong have been increasing. Demand for leased premises have also been increasing due to the strong economic growth prospects in the region. Hong Kong’s residential capital values rose in Q1 2010 with an increase of 8.1% compared to a quarterly increase of 6.9% at the end of last year.

2.

According to Colliers International, average prices in the luxury sector districts grew by 3.2% QoQ to HK$16,058 per sq ft (US$2,066) as at the end of February 2010. This was due to low supply of residential units in this sector. Sustained buying interest and tight supply in the luxury sector could fuel further growth in prices for this lucrative sector of the market.

3.

Reasons for Hong Kong real estate downturns include i) excess supply ii) rising interest rates and iii) high property prices eroding buyers’ affordability.

4.

The number of sale and purchase agreements by the Hong Kong Land Registry for all building units received for registration in January 2010 was 12,380 (+11.4% compared with December 2009 and +115% compared with January 2009)

5.

The Grade A office sector rental rates have been increasing due to the demand created by the improving finance industry. Projections continued recovery in the finance sector and the ongoing trend of corporate relocations, Central and Kowloon East regions of Hong Kong are expected to experience stronger rental growth during remainder of the year.

6.

Hong Kong is ranked 5th in Global Property Guide's list of World's Most Expensive Residential Real Estate Markets 2009.

7.

According to Jones Lang LaSalle’s 2010 Global Real Estate Transparency Index, Hong Kong's real estate market is the 18th least corrupt in the world. The level of transparency in a market is important to consider when investing in foreign real estate markets.

8.

The Urban Land Institute and PricewaterhouseCoopers (PwC) put the Hong Kong third among the top five Asia Pacific cities to invest in its 2009 report of Emerging Trends in Real Estate in Asia Pacific.

9.

Hong Kong's vibrant city and nightlife is attractive for many foreigners as a place in Asia to live and work, hence making Hong Kong real estate and migration to Hong Kong popular for global investors.

10.

Hong Kong boasts low corporate and income tax, a stable government, excellent geographical location and economic freedom. As such, many international companies have made Hong Kong their headquarters, contributing to traditionally strong demand for Hong Kong commercial property. There are no restrictions on any individual or corporation, whether domestic or overseas, to own Hong Kong real estate.

11.

Stamp duty taxes are payable on the purchase of Hong Kong real estate, the rate of which varies according to the total cost of the property. Owners of buildings in Hong Kong are charged property tax, which is based on the property's rental income. The rate of tax is 15% on the property net assessable value (NAV) less a statutory deduction of 20% for repairs and outgoings.

12.

Because of the current economic climate, it is becoming increasingly difficult to obtain finance to support Hong Kong real estate investment. Interest rates for mortgages in Hong Kong are in the range of 3-3.5%, Asia Property Consultants assists clients obtain the most competitive international mortgages for their investment, working with international banks such as HSBC, ANZ Bank, DBS Bank and OCBC Bank.

13.

Asia Property Consultants independently assists international property investors effectively and efficiently manage all aspects relating to the purchase and sale of Hong Kong real estate. Whether the client is seeking residential property if migrating to Hong Kong, commercial property for business needs or as property investment to expand global assets, we source latest real estate market information to enable us to offer honest, reliable opinions on i) Hong Kong real estate cycles ii) the current and future outlook for Hong Kong real estate and iii) expected interest rate and currency movements and their impacts on Hong Kong real estate. In addition to our own experiences, our sources include statistics and forecasts from reliable, reputable sources including the Hong Kong Ratings and Valuations Department, Invest Hong Kong and the Hong Kong Monetary Authority.

For more information on the Hong Kong real estate, call our Hong Kong office at (+852) 8331 1911 or contact us at email@healyconsultants.com