The world’s most expensive property market braces for another year of growth
It’s already the world’s most expensive city to buy a home, and the Hong Kong property market is expected to gain a further 10% in 2018. This is on top of 14% growth in 2017, which marked the longest stretch of house price increases in 25 years. And there are no signs of a slow-down.
“It’s a reflection of soaring prices of land sold over 20 months ago via government land sales.”Thomas Lam Tat-man, general manager of Henderson Property Agency, quoted in SCMP
Hong Kong property market in a nutshell:
- Residential land accounts for only 7% of Hong Kong’s total area
- The government sells off new parcels to the highest bidder (increasingly mainland Chinese developers)
- The average apartment’s price per square foot is HKD$14,100 (S$2,364)
- House prices have increased by a staggering 430% since 2003
Record-setting house prices
There’s a way to go before the city starts competing with the world’s most expensive homes in London, LA, France, and of course Mumbai (where 27-storey private home Antilia is reputed to be worth US $1bn). Nonetheless, the Hong Kong property market smashed records last year for the highest price per square foot.
A four-bedroom Renaissance-style townhouse in Repulse Bay (pictured above) took the gong with a price tag of HKD$860,000,000 (a cool S$144m), equivalent to S$35k psf. Sure it has stunning finishes and a lovely waterfront aspect, but to put this in context, Antilia clocks in at about S$3.3k psf.
Makes us feel a little better about property prices in Singapore.