Home prices rise further in world’s least affordable city

Secondary home prices in Hong Kong have climbed once more, making property prices here 300% higher than its trough in 2003.

Hong Kong

Home prices climb 4% despite already being sky-high

The prospering property market in Hong Kong also meant huge land plots exchanging hands, to everyone’s benefit.

Recently, the HNA Group Co just sold a plot of land purchased just a year ago to Wheelock & Co for HK$6.36 billion (S$1.07 billion). And in turn, Wheelock & Co has sold 750 apartments at its new Kowloon project over the past weekend.

Wheelock & Co paid 15% more than what HNA tendered for the 7,318 sq m plot of land near Kai Tak airport. And even at that sale last year, the Chinese company has outbid other Hong Kong property companies to win the tender. In a year, money was made and more likely than not, the buck will be passed on to the consumer.

Sky-high property prices has not waned demand

Demand for property despite sky-rocketing prices have not yet taken a hiatus. Already termed the world’s least affordable city, Hong Kong properties continue to be popular with local and foreign investors. The fact that Hong Kong developers are willing to pay more than market value for land assets shows their confidence in the market’s future.

The new homes market seem to be the hottest segment despite the Hong Kong government’s attempt to cool the red-hot market with higher taxes and down payment restrictions.

The ultra-low mortgages and developers offers to top up loans have made a significant difference in boosting demand. What does the future bode for this city where property prices have tripled since 2009?