Hong Kong Guide for Real Estate Investors
The Hong Kong real estate market is buoyant and already makes an excellent investment choice for international buyers; but as the gateway to the largest emerging economy in the world, namely China, Hong Kong is poised on the brink of an incredibly exciting period and this excitement is being felt more and more in the already successful property sector.
Real estate investors in Hong Kong currently have great choice and the potential for great yields - but according to expert economic opinion, they are about to enter an age of as yet unprecedented prosperity.
The city of Hong Kong is undoubtedly one of the most vibrant, intriguing and beautiful in the whole world.
On the one hand Hong Kong is among the busiest, most affluent and fast paced cities worldwide, and on the other hand it offers visitors and residents an inimitable serene tranquillity. The tall and imposing modern office blocks and incredible shopping malls give way to beautiful parks which are oases of calm and peace. And you often hear of cities or even countries offering an eclectic mix of eastern and western influences but Hong Kong is the ultimate embodiment of East meets West with the British colonial influence as strong as the ancient Chinese influence and both enhanced by the unique nature of Hong Kong.
Until 1997 Hong Kong was an economically successful British colony on the doorstep of China. Physically located so far away from the direct influence of Britain, the entire Hong Kong extended region was affluent, successful, vibrant and offered a wealth of exciting economic opportunity to the many residents and expatriates living and working there. It embraced the excesses of capitalism and provided a gateway for trade between China and the rest of the world.
In 1997 Hong Kong was handed back to China by the British in accordance with an earlier signed agreement, and despite the fact that China gave extensive guarantees that Hong Kong would not come under the Chinese socialist economic system and would remain fairly autonomous and retain its free market economy there was a great deal of apprehension in Hong Kong about how the country would prosper.
Fortunately for Hong Kong this apprehension was unnecessary and China has allowed the country necessary freedom to prosper; unfortunately for Hong Kong in 1998 it fell into an extended period of recession. Six years of recession resulting from the Asian economic crisis, the global recession and then the SARS outbreak meant that Hong Kong’s fortunes were severely hampered. In terms of the real estate market sector this led to a sliding of prices and demand and an overall correction.
As Hong Kong is a geographically restricted area it is one in which demand for residential accommodation and commercial property often outstrips supply, historically this has resulted in ever increasing property prices. The six year recession which is now completely in reversal actually resulted in the real estate market in Hong Kong suddenly opening up to far more investors as property became cheaper in real terms.
Those property investors who cashed in during the recession are now reaping the returns of their seemingly risky venture as Hong Kong goes from strength to strength once again. Rental yields are increasing dramatically as demand for property once again outstrips supply, and as the re-export country for China to the rest of the world, Hong Kong’s fortunes are rising in line with China’s fortunes. Because China is THE most exciting emerging economy with the longest term prospects of intense prosperity particularly from its exported manufacturing output, its fortunes will rise as will Hong Kong’s. The property market in China is already growing, Hong Kong’s is booming.
Real estate investors looking for a high end opportunity with long term maximum profit potential from rental yield and capital appreciation are flooding the Hong Kong property market with interest. And if expert predictions are right about the long term prospects in China then the Hong Kong property market has legs to run and run.
Asia:- Hong Kong Property Reports
Complete listing of all current property reports for region: Asia:- Hong Kong
Hong Kong Buying Investment Property
Hong Kong Property Investment Guide
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