In Hong Kong, although average home prices have only increased 140 per cent since 1997, the headline figure conceals some interesting facts. Average prices were already very high relative to other places, and the city was on the receiving end of a double-whammy from the Asian financial crisis in 1998 and the outbreak of SARS (severe acute respiratory syndrome) in 2003. Since a post-handover low in 2003, average home prices increased 582 per cent, according to government statistics.
“In all these markets, a combination of insufficient new supply and inexpensive financing have driven prices to previously unheard of levels,” said Juwai IQI co-founder and group chief executive Kashif Ansari. “Higher interest rates may remove one of those supports, but population growth and insufficient supply will continue to put a floor under house prices.”
“We believe that, as far as real estate goes, 2047 will be a non-event,” said Juwai’s Ansari. “Hong Kong is already becoming more deeply tied to the mainland, and economically can only benefit from this process in the long run.”
Thank you to South China Morning Post for the feature.
Find the full article here: South China Morning Post
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