Property Market

The Hong Kong real estate market is buoyant and already makes an excellent investment choice for international buyers; but as the gateway to the largest emerging economy in the world, namely China, Hong Kong is poised on the brink of an incredibly exciting period and this excitement is being felt more and more in the already successful property sector.  Real estate investors in Hong Kong currently have great choice and the potential for great yields – but they are about to enter an age of as yet unprecedented prosperity.

The city of Hong Kong is undoubtedly one of the most vibrant, intriguing and beautiful in the whole world.  On the one hand, Hong Kong is among the busiest, most affluent and fast paced cities worldwide, and on the other hand it offers visitors and residents an inimitable serene tranquility.  The tall and imposing modern office blocks and incredible shopping malls give way to beautiful parks which are oases of calm and peace.  Hong Kong is the ultimate embodiment of East meets West with the British colonial influence as strong as the ancient Chinese influence and both enhanced by the unique nature of Hong Kong.

Until 1997 was an economically successful British colony on the doorstep of China.  Physically located so far away from the direct influence of Britain, the entire Hong Kong extended region was affluent, successful, vibrant and offered a wealth of exciting economic opportunity to the many residents and expatriates living and working there.  It embraced the excesses of capitalism and provided a gateway for trade between China and the rest of the world.

In 1997 Hong Kong was handed back to China by the British in accordance with an earlier signed agreement, and despite the fact that China gave extensive guarantees that Hong Kong would not come under the Chinese socialist economic system and would remain fairly autonomous and retain its free market economy there was a great deal of apprehension in Hong Kong about how the country would prosper.

Fortunately for Hong Kong this apprehension was unnecessary and China has allowed the country necessary freedom to prosper.  As Hong Kong is a geographically limited area it is one in which demand for residential accommodation and commercial property often outstrips supply, historically this has resulted in ever increasing property prices.  There are approximately only 20,000 residential properties supplied in Hong Kong each year, with the luxury stand-alone housing market being even tighter.  Rental yields are increasing dramatically as demand for property once again outstrips supply, and as the re-export country for China to the rest of the world, Hong Kong’s fortunes are rising in line with China’s fortunes.  Real estate investors, especially those from Mainland China, looking for a high end opportunity with long term maximum profit potential from rental yield and capital appreciation are flooding the Hong Kong property market with interest.  The expected long term prospects in China mean that the Hong Kong property market will also have the legs to run in the long term.

"Imagine just having 1% of the population in Mainland China to own a home in Hong Kong – there aren’t ever going to be enough supply” – FAH

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