' "Mainland Chinese often buy Hong Kong residential properties “as a hedge against currency and political risk that they are facing elsewhere,” Ms. Chan said.'
I laugh when I read these types of remarks about mainland property buyers -- in HK, USA, Canada, UK, Australia or anywhere else.
This all code for money laundering of ill-gotten gains by corrupt or beneficiaries of corrupt mainlanders. That no Western government has any strong anti-money laundering regulations on property purchases even on all-cash transactions attests to the corruption in the current western governments.
Ironically, it is Xi Jinping's fear of capital flight which has led to a severe clampdown of outward capital flows that has now started to kill the mainland-led global property bubble.
2
I must say that reading these articles on foreign home ownership, which I by the way enjoy very much, makes me feel even poorer than I am. Being old enough to remember when owning a home in San Francisco was within the reach of most of my friends and myself, all decidedly middle class teachers, an architect, a hairdresser and a retail salesperson for Gumps, at the time ( the early sixties) we considered buying a condo, small house or having a rent controlled apartment the norm. What happened, if there has been, as claimed, so little inflation over the years, to our purchasing power with respect to housing? I still contend it was going off the gold standard and printing money to pay for the war in Vietnam that changed everything, either that or it was coincidental. If there are any economists out there let’s hear it. BTW I would love articles on what one can purchase for say $100,000.00 or less in foreign cities, they do exist, I realize they would be tiny but that’s o.k. with some of us. Thank you.
4
Incidentally, it was within the last couple of years that the weekly report on housing in different cities across the globe in the weekend edition of The F.T. increased the “ what you can buy for” price from $100,000.00 to $ $500,000.00. Has there really been that much of a difference in the housing market as suggested by a couple of commenters that “ hot” money has so hurt the middle class buyer attempting to enter the market. I believe this to be true and should be front and center of any political debate,food, housing, health care and education should be a given not an option in a world awash in cash, although unlikely with the son in law of The Realtor in Chief peddling condos in New Jersey to Chinese investors seeking a green card.
1
Much of the mainland money flooding HK and other international markets are examples of money laundering of ill-begotten gains. In HK mainland buyers pay in cash and leave the apartments empty. The purpose is not to get rental income. It is to diversify into real estate and not risk their money in China being seized by the authorities. I would have thought the capital flight out of China would have been significantly reduced by tighter government capital controls. But money, like water, finds the holes to flow through...
3
The economy of Hong Kong has been controlled by a few real estate tycoons. Nothing has been changed since the Chinese take over. They are used to very low tax rates because of the income from selling lands to developers. This housing price is not sustainable and is affecting the life of millions. That is the reason for the social unrest in recent years.
Before the take over 20 years ago, Hong Kongers with a university graduate can afford a decent apartment, not anymore today. That is why they protest on the street.
Folks who live in SF and Vancouver, watch out!
8
Hong Kong is a pretty depressing place if people are willing to fork out $40m for such a tiny apartment with tasteless decor.
3
It's all to do with available housing stock and what you want out of a particular city that you live and work in. They are willing to fork out whatever amount they deem "affordable" in return for the lifestyle they seek. Same stories in New York, San Francisco, London, etc.
3
You can find much nicer places a stone throw away for less than half that price. I own a 2100sq ft so called village house w private pool and full sea views in clear water bay
3
It might be relevant to note that the spoken language is Cantonese, not simply "Chinese".
9
Also the “Chinese” government doesn’t own the land. The Hong Kong government does... there is (for the moment) a distinction worth making.
2
Like any accommodation, this apartment has its charm. I find it very attractive.
3
Not every apartment cost this much in Hong Kong... try Discovery Bay and you will find similar apartments literally a fraction of this price!
5
Prices like this one (over $5 million USD) for a pretty basic apartment are the future for North American markets like Vancouver, Seattle and San Francisco - UNLESS foreigners (read: wealthy Chinese) are frozen out of the market.
New Zealand did it...it might be time for us to give it a try, too.
15
I thought they implemented laws to do the same in Vancouver a few yrs. ago, for this very reason. I don't know why it is taking the U.S. so long to get it together. And it isn't just West Coast North American cities (excluding Mexico), the Northeast and MId-Atlantic also have seen rises for the same reason.
1
Nowadays employers are reluctant to pay astronomical sums for expatriates living in Hong Kong. Expatriates who are employed to develop the China market would have moved into Mainland China. Singapore is less expensive than Hong Kong.
4
I’m sorry, but that is simply incorrect. I manage expat assignments and assignments to HK are not slowing down. Costs in Singapore are nominally less and 1st tier cities in mainline China are quickly catching up in price. The strong currency and overall convenience provided by HK still makes it the ideal hub for multinationals. Rental prices have decreased slightly over the past few years due to an increase in housing stock.
6
Having lived in HK as an expat for a multinational for almost 15 years, I have to agree with Frankie Leung. Multinational assignments to HK with school aged children families have decreased steadily over the past 20 years. Companies tend to prefer sending single man/woman or ones without children. The heyday for luxury apartments, tuition paid international schools with debentures, club memberships have long passed as companies are compelled to keep their costs down. Expat packages no longer like they once were....HK remains the ideal hub for multinational companies, but many have chosen Singapore as an alternative to HK or have gone into China directly.
6