Housing prices triple from 2003-15
Hong Kong’s red hot property market continued its meteoric rise this year. House price rises are surging, while demand is accelerating. Hong Kong’s residential property price index rose 14.29% (14.4% inflation-adjusted) this year, a pointed departure from the year-on-year decline of 6.11% (-8.82% inflation-adjusted) reported during the same period last year, according to the Ratings and Valuation Department (RVD).
For years, incomes in Hong Kong have remained sluggish, while house prices have tripled from 2003 to 2015 . The surge in housing demands is the resulting combination of low interest rates, currency stabilisation, diminishing land development, and stringent government regulation. Micro properties and smaller residences have seen the largest price increases while completed residential construction rose by 29.4% in 2016.
The property market of Hong Kong, bolstered by demand both foreign and domestic and strengthened by improved economic conditions is expected to continue its trend of vigorous growth.
According to experts at Colliers International, “Demand in the primary market should remain unaffected by the implementation of the new curbs in the near term, since developers have adopted sales strategies, such as offering mortgage financing, discounts on stamp duty, and reducing unit sizes to secure buying interest.”