Hong Kong is in a prime position to take advantage of China's growing economy - and they have both taken advantage and built an economy under their own steam. The latest figures make the Hong Kong property market one of the most attractive in the world. We look at why it would a be a good idea to jump on this speeding boat, before it blows out of port!
Hong Kong's real estate and property markets are on the up and up at the moment. Official figures from the Hong Kong land registry show that both the total number of transactions, and the total number of [property transactions is increasing at a rate of knots. January's figures showed 67.8 billion HKD in property transactions - a 149.3% increase from the same time last year, and an increase of 5.2% from the month previous. In terms of overall transactions, the land registry recorded 16,984 transactions, which is an increase of 92.8% from the same time in 2007, and a jump of 8.9% from the prior month, December 2007.
Obviously this trend has been forming in Hong Kong for a while now. And it is not only the number of transactions that are increasing in the Hong Kong property market, but the value of the property being traded is going up as well. If you are looking to directly invest in the Hong Kong property market, now is the time to start the ball rolling, while prices are relatively low and growth seems set to continue.
Tourism is another area where the country should see a sharp increase in the number of transactions. Jeff Voyles of Globalysis said that "Hong Kong faces stiff competition for tourist dollars from other Asian destinations", and it has met the challenge wonderfully. Hong Kong expects to see around 30 million visitors in 2008, representing an increase of 7% over the previous year, and the revenue from these transactions is set to grow to around $155 billion HKD. Hotels in Hong Kong will see sustained growth this year, as will airlines, and business oriented services.
An example of the growth that is being seen in Hong Kong recently is shown by the purchase of tracts of land for development in Shatin and Mid-Levels by Henderson Land Development Co, for around $128 billion HKD. Work on the high-rise apartment blocks and several low-rise blocks should be completed by April and March 2009, for separate parts of the projects, in time to cash in on the breakneck economic growth.
Prices are at their highest level in a decade in the Hong Kong property market, and they show signs of continuing to increase - in sharp contrast to the housing market in the US. A 50% increase in prices over the next three years has been predicted by analysts Merril Lynch. They have been joined in their positivism by Sun Hung Kai properties, as well as other developers. Investors seem to be recognizing and touting that buying an apartment is more profitable than buying shares at the moment.
All this means is that savvy investors will not miss out on the golden opportunities provided by property management in Hong Kong this year!