As per reports, Hong Kong’s real estate market will not be crashing anytime soon, allaying fears of several market watchers who feared a major crash anytime soon. Experts have opined that the Hong Kong real estate market is driven by decent economic factors and the absence of new land supply in high volumes will naturally keep the market insulated from any such crash. Of course, property prices are steadily correcting in Hong Kong, one of the world’s costliest real estate markets. However, this has only made Hong Kong property more attractive for local buyers and global investors alike.
The Hong Kong real estate market will rise again in 2019 due to huge demand and higher sales volumes generated by buyers coming from mainland China who garner permanent residency status for Hong Kong. They will be investing in property and will again generate growth in prices of property as per reports. As a result, this long pending demand from a major section of buyers in mainland China will keep the market ticking strongly. These are people who have shifted to Hong Kong already and will look to buy their first properties soon.
No crisis or mega correction is forecasted for Hong Kong’s real estate market in 2019 due to such factors. Hong Kong remained a colony of the British Empire until the year 1997 when it became a semi-autonomous region in China. Prices have grown hugely over the last 10 years on account of limited supply of housing, lower rates of interest and big capital investments from mainland China buyers. Hong Kong currently has a property market that is correcting but was volatile sometime back with average residential prices expected to fall by 20% by the end of 2019. There are predictions of 10-20% de-growth in residential prices with the rise in interest rates as per reports.
However, transactions made in larger numbers by buyers from mainland China will boost prices once again. In 2012, the Government had a duty which scaled up tax amounts of 30% of the buying cost for non-residents in a mission to curb growth in prices. 7 years are required for attaining permanent residency in Hong Kong as per reports and these are people who will purchase homes in 2019. With prices expected to correct by 15%, these buyers can land properties at 45% cheaper rates and this will propel the market forward as per reports.