Prices of luxury houses in Hong Kong keep rising. Media analysis: luxury houses still have rising potential.

Prices of luxury houses in Hong Kong keep rising. Media analysis: luxury houses still have rising potential. In recent years, the property market in Hong Kong has been improving, thanks to mainland funds to some extent. Chen Yongmei, Assistant Director of Immigration of the HKSAR, said recently that,

Last year, the entry plan for Hong Kong capital investors introduced more than 5.8 billion yuan, more than double that of 2006. Most applicants choose to invest in financial assets and real estate, many of them invest in luxury houses, and the average real estate value exceeds11000000 yuan. Luxury houses in Hong Kong are on the rise. The latest issue of Bauhinia magazine published relevant articles, arguing that Hong Kong's real estate market is developing healthily, there is no bubble, and luxury houses still have rising potential.

The article points out that since the abolition of inheritance tax in Hong Kong last year, many mainland tycoons have begun to pay attention to luxury homes in Hong Kong. Recently, the mainland rich have become the "new force" to buy luxury homes in Hong Kong. According to the person in charge of Hong Kong real estate, during the Golden Week last year, about 40 newly sold first-hand buildings in Hong Kong were purchased by mainland customers, accounting for 5% of the new transactions. In the famous sea view mansion "Arc de Triomphe",

Before and after the "Eleventh" event, mainland tourists bought a unit of more than 3,400 square meters for more than 90 million Hong Kong dollars, with an average price of 26,200 Hong Kong dollars. In the same district, mainland tourists bought an apartment of 1400 square feet at a price of more than 2100000 Hong Kong dollars. Hong Kong has no foreign exchange control, convenient capital mobilization, advanced information and convenient transportation, attracting mainland rich people to buy homes here. It is reported that mainland buyers are mainly engaged in international trade, and they are interested in the appreciation prospect of luxury houses in Hong Kong. Since the return of 1997, with the continuous development of Hong Kong's economy, the luxury residential market in Hong Kong has experienced a process from prosperity to decline, and then took off from the bottom. At the beginning of 1997, the price of luxury houses climbed to the peak, but then, under the impact of the Asian financial crisis, the price plummeted. By 2000, the bursting of the Internet bubble had seriously hit the confidence of investors, and the stock and real estate markets were at a low level for a long time.

At the beginning of 2003, SARS broke out, which made the luxury home market fall to the bottom. However, in the second half of 2003, with the implementation of the "individual tour" policy and CEPA, Hong Kong's economy recovered and the real estate market rebounded strongly. By 2006, the economy had fully recovered and the real estate market had achieved great success. At the end of last year, Sun Hung Kai Properties won a piece of luxury land on Galitt Hill Road on Hong Kong Island at a record land price of over HK$ 42,000 per square foot, with a total price as high as HK$1800 million, which was 1.34 times higher than the starting price of HK$ 768 million, far exceeding market expectations and breaking the1per square foot set at the peak of Hong Kong real estate in 1997.

The article believes that although the sky-high auction price exceeds expectations, the market is still quite optimistic about the prospect of luxury homes in Hong Kong, and the real estate market in Hong Kong is developing healthily without bubbles. The report pointed out that Hong Kong's GDP in 2006 exceeded the level of 1997.

The stock market also hit a new high. Comparatively speaking, the real estate market is relatively backward. Judging from the leading index of Zhongyuan Real Estate, which reflects the overall house price, this year's 1 month 18 is 16.48. Although it is twice as high as the lowest time in 2003, it is still not as high as 100 when the index was established in 997. The average price of luxury houses in the forefront of the overall property market is still about 20% lower than that of 1997, indicating that there is still room for improvement in the future. In fact, since last year, Hong Kong's real estate market, especially the luxury residential market, has shown a scene of "rising volume and price". According to the data of Hong Kong Land Registry and Midland Property Information Research Department, last year 1- 10, the total transaction volume of properties over 10 million yuan was more than 3,700, an increase of 86% compared with the same period in 2006, reflecting that luxury houses were highly sought after by the market.

Yu, senior managing director of CB Richard Ellis in Hong Kong, also believes that,

Hong Kong's sustained economic growth, ideal employment situation and negative real interest rate will all increase the demand for real estate. The depreciation of the dollar and the appreciation of the renminbi will also prompt investors to put some assets into the real estate market to resist the fluctuation of the investment market. The bank predicts that the average residential price in Hong Kong will rise by 15% to 20% this year, luxury houses will outperform the market, and prices will rise by 20% to 25%.