Property prices in Hong Kong rose at the fastest rate in the world last quarter
Leading today’s Hong Kong real estate news, home prices in the city rose 15 percent in the last quarter year-on-year, the fastest in the world, according to Knight Frank. The real estate firm tracking 57 markets found out that Hong Kong was leading the world in property price growth in the first quarter this year for the first time since the second quarter of 2015. Also in the headlines, Hong Kong’s first private farmland auction failed to find any buyers, shattering hopes that the 119,000 square feet (11,055 square metres) of agrarian space could help ease the housing shortage. All these stories and more await you, if you just keep reading.
Property Prices Rose 15% in Q1 – Fastest in The World
Hong Kong housing prices soared 15% in the year through March, the fastest appreciations in Knight Frank’s Global Housing Price Index, published Thursday.
The densely populated city-state often records some of the most expensive sales in the world in addition to rapid overall price growth despite government cooling measures, which have included increased taxes on foreign buyers. This is the first time Hong Kong has led Knight Frank’s quarterly index since 2015, though it has held the top spot 10 times since the brokerage started the index in 2008. Read more>>
First Private Auction of Farmland Failed to Find Buyers
Hong Kong’s first private auction of convertible farmland failed to find a buyer, in a setback to the city government’s plan to make more plots available for the construction of residential buildings.
Not a single person out of nine registered bidders showed their hand during 30 minutes of hushed proceedings at the auctioneer’s office in Central on Monday, even though 40 people showed up at the sale, where 10 plots of land in Yuen Long measuring a total of 119,000 square feet were up for grabs. Read more>>
Henderson Land Sold 180 Flats Over The Weekend For HK$1.1B
Hong Kong homebuyers rushed to buy small flats that kicked off sales over the weekend, underscoring insatiable demand in the world’s priciest property market even as signs of overheating are almost ubiquitous.
At Henderson Land Development’s Cetus.Square Mile project in Mong Kok, all of the 180 flats, with areas ranging from 191 square feet (17.7 square meters) to 417 square feet, were sold on Saturday, according to Midland Realty. Read more>>
Vacancy Tax Might Prompt Developers to Pass Cost to Buyers: JLL
A vacancy tax on first-hand properties might cool raging hot prices in Hong Kong, as developers would launch more of their inventories for sale, consultants said. However, they also warned that developers might end up passing on the additional cost to buyers, if the tax was to be implemented.
The number of new units lying vacant reached 9,000 between last December and March this year, according to data from the Transport and Housing Bureau. “A vacant tax on new properties would in theory increase competition in the market and put downward pressure on prices,” said Ingrid Cheh, associate director of research department at Jones Lang LaSalle. Read more>>
Controversy Over Converting Golf Course to Homes Shows Social Divide
Its sprawling greens and woodland have made Hong Kong’s historic Fanling golf course a favourite with homegrown and international stars, but it is now under threat after being listed for potential housing development.
As the government seeks solutions for the space-starved city’s lack of decent homes, the club argues that sacrificing a world-class sports venue is a short-sighted move. But grassroots campaigners say the prime spot in the north of Hong Kong should not remain a playground for the wealthy elite. Read more>>
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