I return to Hong Kong next week. I’m planning to bring you an occasional “HOTD” report. Or, actually, a “FOTD” (Flat of the Day). It might be amusing for you PLUSAs to see what kind of bang your buck gets in a similar-but-different global city.
I don’t think the Hong Kong real estate bubble is going to burst anytime soon. It dipped a bit last December after the financial crisis, but it is back up again (and a friend of mine who bought investment property in January has already made 20% on his well-timed buy).
But a couple of factors make Hong Kong property an unusual situation. First is that there’s inflated demand from mainland Chinese looking for ways to launder their money. HK is one of the world’s biggest money laundering centers!
The second factor is that the Hong Kong government owns all the land, and sale is by leasehold. Hong Kong has low taxes, so the bulk of its operating costs come from the land “sales”. The government treats its land like the Arabs treat their oil, releasing only as much as the market will bear, and thus keeping property values artificially inflated.
No, ‘fraid not (waaah!). The ticket’s bought, the subtenant moves in on October 1st.
I’ll be back in around 5 months, though.
Great idea WonTon…these people will be flabergasted at HK prices!!!!!
No new ones yet THL. I’m working on a photobook of him and Pia.
WONTon- will you be here for the Oct. 15 award ceremonies?
That’s a great shot, THL!
Even the baby on the left is looking over like “WTF??”
snapperetta,
Any new pics of Hari?
“Yawn”- now you guys know how some of us feel when you’re talking about Real Housewives of NY, NJ, Atlanta, Podunk… 🙂 (Or about dave’s sex life) 😉
A good cat discussion should liven things up!
I return to Hong Kong next week. I’m planning to bring you an occasional “HOTD” report. Or, actually, a “FOTD” (Flat of the Day). It might be amusing for you PLUSAs to see what kind of bang your buck gets in a similar-but-different global city.
I don’t think the Hong Kong real estate bubble is going to burst anytime soon. It dipped a bit last December after the financial crisis, but it is back up again (and a friend of mine who bought investment property in January has already made 20% on his well-timed buy).
But a couple of factors make Hong Kong property an unusual situation. First is that there’s inflated demand from mainland Chinese looking for ways to launder their money. HK is one of the world’s biggest money laundering centers!
The second factor is that the Hong Kong government owns all the land, and sale is by leasehold. Hong Kong has low taxes, so the bulk of its operating costs come from the land “sales”. The government treats its land like the Arabs treat their oil, releasing only as much as the market will bear, and thus keeping property values artificially inflated.