Hong Kong, one of the least affordable housing markets in the world, is experiencing a rare downturn, and the impact on the city’s luxurious property market is obvious.
A 1,875 square foot (174 square meter) apartment for sale in the Repulse Bay neighborhood on the southern tip of the island, where some of the most expensive properties in the world are situated, is currently advertised for HK$95,000 ($12,160) per month, 17% less than the rate it was leased for the previous year. A real estate brokerage that is closer to the central business district advertises on its window that it is “confronting the reality” by listing an apartment for HK$30 million after a HK$2 million discount.
Residential, office, retail, and primary and secondary markets are all affected by the slowdown in Hong Kong’s real estate market. Although there are many high net worth individuals who live in the financial center, the top end of the market has not been spared. According to real estate organizations, there are fewer transactions on the market, prices for sales and rentals are dropping, and there are fewer people viewing homes.
According to a price index from Knight Frank, the migration of expats, closed borders with the mainland, interest rate increases, and an unsteady global macroeconomic climate have all contributed to the decrease of luxury home prices to a 15-month low. High-end home values are predicted by Savills Plc to fall further five to ten percent by 2023. According to Centaline Property, only 1,800 luxury properties will be sold in the year 2022, the lowest in nine years.
Why Hong Kong Property Market Is In A Slump
The recession in Hong Kong’s property market has an impact on all sectors of the economy, including residential, office, retail, primary, and secondary markets. Even though the financial hub is home to many high net worth individuals, the top end of the market has not been spared. Real estate associations claim that there are fewer transactions taking place on the market, prices for purchases and rents are falling, and fewer people are looking at houses.
Expatriate movement, tight …