Categorized | International

Real Estate Analysts Not Confident About Hong Kong’s Housing Market

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For the last three years, Hong Kong has had one of the best real estate markets across the globe. However, the most recent data indicates that the housing market is finally starting to weaken. Sale prices on homes have fallen as much as ten percent in certain areas, and many potential buyers are having second thoughts due to the likelihood that rates will fall even further in the months to come.

Analysts believe that the most recent decline in sales and prices may actually continue into the future, as there is no indication as to when it will level off, or improve. Many fear that the current situation in the real estate market is similar to that of 1997, when Hong Kong suffered severe economic turmoil due to a serious dip in housing prices and sales

Housing prices have been quite high in Hong Kong, and have steadily increased since the 2008 global housing crash. Experts are quick to dismiss the idea that Hong Kong may be facing a very vulnerable housing bubble, as there hasn’t been a single sign of default or foreclosure in the region. Instead, experts believe that the government has had great influence on its rise for the last three years, as well as its most recent decline.

The Hong Kong government had once limited the number of new homes that could go up for sale, which led to increased prices. They have since changed their approach, as indicated by accepting a relatively cheap offer for land intended for residential housing. Real estate analysts believe that housing prices may continue to slightly decline, as the government looks to increase the supply of available residential land for developing at a minimal cost to buyers.

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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.

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