The latest research suggests that Chinese property buyers are really interested in Hong Kong’s property market.
This property news comes despite a higher rate of property tax. Property investors are still very keen to invest in their own country, willing to build and strengthen the entire country and consequently, this is attracting, even more, international investors to China.
It appears that stricter controls on residential property in tier one, mainland cities in China, are encouraging property investors to focus on Hong Kong. Hong Kong is located well in China and is becoming an increasingly popular holiday destination for tourists, too. This means that Chinese buyers and investors are likely to rent out properties to visitors very easily.
An official survey shows that a net balance of 91% of respondents reported high prices throughout the month of March, and 44% reported an increase in agreed sales. The prices of Chinese property are only expected to go up too, which is great news for property investors looking to sell or rent out property space to tourists/citizens.
Expectations in China remain strong but there is a tight supply in supporting prices as vacancy rates in the city remain near 20-year lows. A lot of people are being convinced to sell their property, as demand for houses is poignant.
There is a good momentum happening in Hong Kong’s real estate market. Respondents are presuming a robust demand to be sustained as a net balance of 78% expects rents to increase across the next quarter.
For Chinese property buyers and other international investors, the housing state is only set to improve as the year goes by. For first-buyers it may be a difficult time to buy, with such high demand for property and soaring house prices. However, the real estate industry in China is vigorously healthy at the moment, and so it is likely to remain this way for a long, long time.
Written by Gemma Smith