Living
Buying Property
Real Estate is a lucrative business in Hong Kong and almost all local companies have some involvement in it. Property companies make up more then 10% of the Hang Seng Index. The Hong Kong Government owns all the land and is said to be the biggest landowner in the world. Land is sold on tender with large developers trying to outbid each other.
Since 2005, luxury residential (over $29,000 per square metre) and commercial rents have risen almost steadily. Much of this is tied up with how much the mainland Chinese are spending in Hong Kong, trade and investments and, of course, the confidence of investors. Property in Hong Kong is far too expensive and volatile and small investors tend to be overly cautious, especially given the fact that the amount of money you put down and what you get for it is enough to make you go elsewhere. Long-term expats are also wary of the unpredictable highs and lows of the property market and many choose to rent, even for periods of 10 or 20 years. Some have bought and lost out while others are now millionaires.
Buying to rent or simply buying as an investment is not a priority or even a thought for most expats, since there is always an end to a contract and a desire to go home when that time comes. For those who do, they tread a minefield of factors such as investing in old or new buildings, what area to chose, legalities, mortgage plans, interest rates and other government formalities. Interest rates in Hong Kong are deregulated and banks take care of their own regulations based on US Federal Reserve trends.
Since 2005, luxury residential (over $29,000 per square metre) and commercial rents have risen almost steadily. Much of this is tied up with how much the mainland Chinese are spending in Hong Kong, trade and investments and, of course, the confidence of investors. Property in Hong Kong is far too expensive and volatile and small investors tend to be overly cautious, especially given the fact that the amount of money you put down and what you get for it is enough to make you go elsewhere. Long-term expats are also wary of the unpredictable highs and lows of the property market and many choose to rent, even for periods of 10 or 20 years. Some have bought and lost out while others are now millionaires.
Buying to rent or simply buying as an investment is not a priority or even a thought for most expats, since there is always an end to a contract and a desire to go home when that time comes. For those who do, they tread a minefield of factors such as investing in old or new buildings, what area to chose, legalities, mortgage plans, interest rates and other government formalities. Interest rates in Hong Kong are deregulated and banks take care of their own regulations based on US Federal Reserve trends.
