The graph above from the Rating and Valuation Department (RVD) shows that between 2008 and 2009, house prices were on a downward trend, which conveys how the global financial crisis negatively affected Hong Kong’s housing market. However Hong Kong’s residential price index has increased by 20% since the end of 2009, predicting a rise in prices in 2010. The rise is due to strong liquidity in the banking system and the further drop in funding costs.

CB Richard Ellis states that luxury residential capital values increased a more modest 6.9% over the fourth quarter of 2009, compared to the 17.6% quarterly increase recorded in the third quarter. Relatively stronger growth was noted in Island South, with prices rising 9.7% q-o-q, followed by a 6.3% quarterly increase on The Peak. While luxury residential values remained on an uptrend on Hong Kong Island, prices in West Kowloon softened 2.5% in the fourth quarter.

3.

According to Colliers International, given the continued catch-up of the leasing market, luxury residential rentals are expected to see a positive growth of 5% over the next 12 months.  Sustained buying interest from cash-rich individuals and the extremely tight supply in the luxury sector will fuel further growth of property prices by 10% over the same period.

4.

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.

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6.

The Hong Kong Land Registry received 14,300 sale and purchase agreements for all building units received for registration in April 2010. This was an 12.5% increase compared with March 2010 and a 28.3% increase compared with April 2009.

7.

The number of sale and purchase agreements for all building units received for registration in April 2010 was 14,300 (+12.5% compared with March 2010 and +28.3% compared with April 2009). With the high level of transactions, the overall luxury residential price index maintained its momentum, increasing 9.8% q-o-q, almost hitting 1997’s peak.

8.

Due to the current economic climate, it is becoming increasingly difficult to obtain finance to support Hong Kong residential property market investment. International mortgages are an attractive option for many investors. Healy Consultants assists clients obtain the most competitive finance for their investment, working with international banks such as HSBC, ANZ Bank, DBS Bank and OCBC Bank.

 

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