Categorized | International

Hong Kong Still May Face Property Bubble

Please Share!

Economists in Hong Kong believe that the Hong Kong residential real estate market may still face a property bubble if prices are not soon corrected. Housing prices once again hit record highs in the latest report.

 

The financial secretary for Hong Kong has announced that he is closely watching the housing market, and that he will take measures to cool it down if absolutely necessary. Government officials and economists fear that property buyers may get caught up in the pricing growth, and buy properties without fully thinking over their decision.

 

The government has taken measures to increase the amount of land available for building in hopes that it will help to slow down the growth in housing prices.

 

Residential real estate prices have skyrocketed since 2009, rising by more than seventy percent. The increase is largely due to the increased number of Chinese buyers, as well as the offering of record low interest rates by lenders. Prices are up by more than four percent thus far in 2012.

 

Prices had actually fallen during the second half of 2011, which led many economists to believe that Hong Kong was in the clear with respect to the housing bubble. However, the market has quickly turnaround, and now appears to be stronger than ever.

 

More middle and high-income investors have decided to put their money into the housing market in recent months. Such a decision is likely due to the thought that properties will hold their value better than cash. Investing in Hong Kong real estate also has provided a better return in recent years.

Please Share!

About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

Leave a Reply

Twitter Chat