Hong Kong had a tough time in 2019 and suffered from a weakened economy, the ongoing trade war between the US and China, and violent protests.
All property sectors were affected badly by these events, especially the retail market, which saw some of the biggest declines. With a new year ahead, it’s time for us to analyze what we can expect from Hong Kong’s property market in 2020.
In this article, we review the following:
- Hong Kong’s Property Market in Recent Years
- Why is Hong Kong property so expensive?
- What can I expect from Hong Kong’s property market in 2020?
- Is buying property in Hong Kong a good investment?
Hong Kong’s Property Market in Recent Years
Hong Kong’s property market is the most expensive in the world, outperforming places like Singapore and Sydney. Real estate prices have increased by double digits, making property inaccessible to many locals.
In the second quarter of 2018, the year-on-year price increase was 13.5%, a bit higher than the price increase in the first quarter of 2018. At the same time, the average sales value per transaction increased by 8.4% according to Colliers.
Colliers also reported that the supply of residential units increased by 12% in 2018 compared to 2017. The luxury residential rents increased by 4% in 2018.
Nowadays, you can buy a 10-bedroom house in many European countries for the same price of a 28 square meter apartment in Hong Kong. Besides, the average price per square meter in Ho Chi Minh City is only 14% of that in Hong Kong.
Hong Kong Property Prices in 2019
Looking at real price levels, the average price per square meter was around USD 22,507 in April 2019. That’s almost twice as much as Singapore’s average of around USD 11,442.
Prices have grown strongly for over a decade, except for a brief slump in 2016 due to the mortgage rate hike. We also saw price decreases during the second half of 2018 and 2019. The Centa-City Leading Index CCL shows the price increases from 1996 – August 2019, which speaks for itself. Continue reading Hong Kong Property Market Outlook 2020: A Complete Overview