地產博客 > Real Estate Situation 返回
瀏覽人次:855    回應:3
Real Estate Situation

The painful slump in The Greater Bay Area property

 

Damon Ho

23rd November 2024

In recent years, the government has been persisting to encourage the integration between The Greater Bay area (GBA) and Hong Kong. However, HongKongers found that there was a huge gap in properties prices between these two districts. Early last year, Hong Kong has resumed quarantine-free travel between China and Hong Kong. Since then, HongKongers are not only to return China for fine dining and enjoy various entertainment activities, but also to search the opportunities to invest in properties or buy self-use units.

The author is aware of an investor and a user who purchased properties in Dongguan and Zhuhai respectively for investment and self-use purposes in the middle of last year. The Investor who bought a detached house in Dongguan for twenty million Renminbi. One and half years later, this property price fell by 50%. At present, the impairment loss of property value is about ten million.

The user spent three million to buy a high-rise unit in Zhuhai. By December of this year, the price dropped by 30%, and the market value of this property has decreased to approximately one million.

The above-mentioned investor and user were pessimistic to Hong Kong property market, so they switched to invest China property. Unfortunately, the investment losses in China properties were worse than purchasing Hong Kong properties at the same time.

The author had published an essay earlier to suggest that HongKongers should lease instead of buying properties in China. Indeed, the oversupply of residential properties hit the market seriously, and there is no chance to elevate the prices again in the near future.

In China, the foreign exchange control is strict, and it is difficult to remit back the funds deriving from the sales of real estates, which will cause great inconvenience to landlords who need capitals.

With the year of 2025 approaching, the property markets in China and Hong Kong are the same fate with a shared future, and they are also strained by similar unfavorable factors. These nuisances such as the trade war, economic slowdown, oversupplies, and downward purchasing power are still fermenting.

Nowadays, the most optimistic market comments only estimate that Hong Kong property prices will rise by 5% next year, and this minimal rise cannot compensate for the cost of buying a residential unit, and China properties will be worse. Therefore, Hong Kongers can continue to visit the GBA to enjoy low-cost services and products. As a smart consumer, he or she should leave these opportunities to property investors who do not care about the fluctuation property prices in the foreseeable future. 

 
 
我要回應
我的稱呼
回應 / 意見
驗証文字
 
會員登入
登入ID 或 網名
密碼
1. Riches do not have plan to exit 2024-11-23 21:33:11

Despite more entrepreneurs in Hong Kong (36%) planning to exit in the next five years than globally (23%), a greater proportion of businessmen in the city still lack succession plans compared to their international peers.

The HSBC Global Entrepreneurial Wealth Report 2024 revealed that two in three Hong Kong business owners do not have a wealth transfer plan, whilst six in 10 have yet to develop a successful succession strategy for their business.

There are also more high-net-worth entrepreneurs (78%) without a business succession plan compared to ultra-high-net-worth individuals (54%

3. Hong Kongers lie flat for public hse 2024-11-26 09:09:45

About 30.5% of Hong Kongers said they would adopt a "lying flat" approach to meet the qualifications for applying for public housing.

The Hong Kong Housing Authority, the Hong Kong Federation of Youth Groups, the Kowloon Youth Committee, and the New Territories Youth Association, collectively known as the "Four Associations," conducted the survey amongst young people aged 18 to 40 in Hong Kong,

However, nearly 60% of respondents stated they would not do so to meet public housing application criteria. Over 80% of respondents attributed the phenomenon to unaffordable private housing prices of young people, whilst 61% cited insufficient opportunities to purchase subsidised sale housing.

4. Global players to expand offices in HK 2024-11-28 12:38:34

A government decision to allow foreign investors to seek residency through investments in residential properties worth more than $50m is expected to spice up Hong Kong’s struggling office sector.

Thomas Chak, head of Capital Markets and Investment Services at Colliers Hong Kong, said the policy could spur global players to expand their offices in Hong Kong, driving demand for office and retail spaces, as well as accommodations.

“This policy could really spice things up in Hong Kong, especially in the asset management sector,” he told Hong Kong Business.