Hong Kong and China Real Estate

It’s always great to go back to one of my homeland, Hong Kong. The city is always buzzing, people are quite happy these days with their highly appreciated value of real estate. People always compare the high real estate price of Hong Kong and Manhattan and I think Hong Kong has been surpassing many metropolitan cities regarding annual real estate appreciation.

As we know Hong Kong is an island with almost 7 million people and always crowded with tourist/visitors especially from Mainland china. Average prices of real estate has risen at least 30% since a year ago and average price ranges from US $1000 to$1800 per square feet. These are the prices for high rise condominiums which aren’t even brand new. For the really high end estate, prices range from $3000 to $5000 per square feet. Hong Kong luxury home prices jumped 45% last year.

You might be wondering: who are the super rich buying up and supporting such a crazy market? In recent years, many multi millionaires are created in Mainland China and they can travel to Hong Kong freely to purchase properties and gain citizenship in Hong Kong. The Mainlanders has been the reason in supporting booming real estates in Hong Kong and all major metropolitan cities within Mainland itself. They either bought up all these units as their second home or just plainly kept it for future appreciation. Many buyers form groups to visit Hong Kong to purchase new construction and they each purchase 3-5 units at a time in one day.