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sleek
27-10-10, 21:08
Hong Kong luxury home prices top their 1997 peak (http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1089706/1/.html)
Posted: 27 October 2010 2043 hrs

HONG KONG - Hong Kong's luxury home prices have topped their pre-Asian crisis peak, data showed Wednesday, frustrating government efforts to cool one of the world's most expensive real estate markets.

Average prices for homes of at least 100 square metres (1,100 square feet) are now 14 percent above what they fetched before the 1997 downturn, the Hong Kong Monetary Authority (HKMA) said.

The data comes amid fears of a property bubble in the densely populated city of seven million and has led some lawmakers to call for a resumption of a subsidised housing scheme due to concerns about the city's growing income gap.

Government figures show average luxury home prices in August were 142,249 Hong Kong dollars (US$18,300) per square metre, compared with around 122,500 Hong Kong dollars before the 1997 crisis.

Overall, home prices plunged about 60 percent during the Asian crisis, according to government data.

However, the cost of a home has soared more than 45 percent from their trough two years ago, prompting the government to hold about half a dozen sales in the past year to boost supply.

The sales sparked huge interest with Hong Kong's richest tycoon, Li Ka-shing, snapping up two prime residential sites for about 7.61 billion Hong Kong dollars in August.

Analyst Xavier Wong warned that the city's property market may already be in the "early stages" of a property bubble with little sign of prices cooling down.

"Luxury property prices will continue to rise by about 12 percent in the next (year)," Wong, director and head of research for Greater China at property consultancy Knight Frank, told AFP.

Earlier this month, the city's chief executive Donald Tsang outlined a fresh batch of measures aimed at cooling the property market, including halting automatic residency for rich property buyers.

The move is expected to affect wealthy mainland Chinese investors, who account for as much as half of luxury homes sales in Hong Kong, stoking claims that speculators are adding to the sharp price rise.

"In recent years, Hong Kong has seen a surge in mainland Chinese buying luxury homes," Buggle Lau, chief analyst at Hong Kong property broker Midland Holdings, told AFP.

"This has created a situation where demand for luxury homes exceeds supply."

Pro-government lawmaker Raymond Ho called on the government to consider restarting the city's subsidised housing scheme.

"The middle and lower class are finding it more difficult to afford flats amid ever-increasing property prices," he said.

Non-luxury flat prices have put home ownership out of reach for many Hong Kong residents, although they remain below their 1997 peak.

Opposition lawmaker Frederick Fung said: "For private developers, of course it's the more money, the better... They are not willing to help stabilise the market.

"Since there is no regulation, it is not possible to control their greediness and short-sightedness."

Among those finding it difficult to find a place to buy is leading concert pianist Lang Lang, who was born in China but now calls Hong Kong home.

"I'm proud to be a Hong Kong resident ... but Hong Kong is very expensive," the 28-year-old was quoted as saying in the South China Morning Post on Wednesday.

"I have a home in New York. I have a home in Beijing, but I'm still looking for my dream home in Hong Kong. It's more expensive than New York."

Hong Kong has surpassed New York, Paris and Tokyo as one of the most expensive cities in the world in which to buy a flat, according to the Global Property Guide website.

The site said Hong Kong is the third most expensive city to buy a 120-square-metre apartment, with Monaco as the most expensive and London second.

- AFP/ir

sleek
27-10-10, 21:14
Luxury home prices in Hong Kong reach new highs (http://www.channelnewsasia.com/stories/eastasia/view/1089710/1/.html)
By Roland Lim | Posted: 27 October 2010 2024 hrs

HONG KONG: Luxury home prices in Hong Kong are now past their pre-Asian Financial Crisis peak.

Over the past year, prices for high-end residential apartments have been hitting record highs but official data out today shows that average luxury home prices are now 14 per cent more expensive now compared to before the 1997 downturn.

One of the reasons for the surge in prices is the shortage of large apartments or homes of at least 100 square metres.

The other is the flow of 'hot money' attracted by a low interest rate environment.

The Hong Kong government has significantly increased land supply ensuring that about 20,000 units are available annually, where the average take-up rate in any given year is about 18,500. However, analysts say the impact of the new supply will only be felt by 2012.

Still, property prices getting out of reach for the middle and working class has become a real concern.

In a bid to help those who are in the sandwich class - those earning too much to qualify for public housing but not enough to buy private, the government is introducing a rent-to-buy scheme.

First-time buyers will have a chance to rent for the first five years before deciding to buy.

Lawmakers in Hong Kong also want to open the debate to resume the government's subsidised housing scheme, in a bid to provide more affordable housing. The government though, is reluctant because the last time the scheme was implemented, home prices fell by as much as 60 per cent. It does not want to destabilise the market too much.

According to one ranking, a 120 square metre apartment here in Hong Kong is now the third most expensive in the world, after Monaco and London. It is also more expensive than in New York and Tokyo.

-CNA/ac

Wild Falcon
27-10-10, 21:49
At least in Hong Kong, a luxury unit is defined by unit size - it has to be above 1,100 sq ft. The price leaders are the large units above 1,100 sq ft. Singapore is the exact opposite - the price leaders now are the shoebox 250 - 500 sq ft units with low affordable quantum. It's bizarre that these shoeboxes are also marketed and considered by most analysts as "luxury" in Singapore. Our standard of "luxury" is very low. In my mind, the HK market looks much healthier - as comfortable good-sized units are the ones in high demand - not some 300 sq ft unit shoeboxes which probably attract middle class speculators taking on huge leveage.

proud owner
28-10-10, 00:27
At least in Hong Kong, a luxury unit is defined by unit size - it has to be above 1,100 sq ft. The price leaders are the large units above 1,100 sq ft. Singapore is the exact opposite - the price leaders now are the shoebox 250 - 500 sq ft units with low affordable quantum. It's bizarre that these shoeboxes are also marketed and considered by most analysts as "luxury" in Singapore. Our standard of "luxury" is very low. In my mind, the HK market looks much healthier - as comfortable good-sized units are the ones in high demand - not some 300 sq ft unit shoeboxes which probably attract middle class speculators taking on huge leveage.

like i have been saying ... people buy MM i buy big ..

like many here believe , spore will go towards HK style of MM units ..

soon there will be demand for big units like how it is beginning to be now in HK

kane
28-10-10, 01:42
like i have been saying ... people buy MM i buy big ..

like many here believe , spore will go towards HK style of MM units ..

soon there will be demand for big units like how it is beginning to be now in HK

lots of HDB 5 roomers are staying in luxury homes.

Wild Falcon
29-10-10, 20:40
Definitely more luxurious and can accomodate more things than a 300 sq ft shoe box lah :) Staying in a shoebox can be stifling and suffocating.

lots of HDB 5 roomers are staying in luxury homes.

sh
29-10-10, 21:46
like i have been saying ... people buy MM i buy big ..

like many here believe , spore will go towards HK style of MM units ..

soon there will be demand for big units like how it is beginning to be now in HK

The majority of Hong Kongers already live in MMs. Have you seen the size of their average home? The average HK 3 bedroom apartment is 700sq ft, and that is including common areas. So the actual built in is even smaller. Now, that's MM.

So in HK, luxury is defined by size.

In Singapore, the lowest life form in property, the 3room HDB flat is larger than an average HK apt.

In Singapore, Luxury is defined by the being private and location. (since HDB houses the vast majority)

MMs fills a niche in the Singapore, the desire for HDB owners to own a piece of private property , with low quantum. There will be demand...

proud owner
29-10-10, 22:26
The majority of Hong Kongers already live in MMs. Have you seen the size of their average home? The average HK 3 bedroom apartment is 700sq ft, and that is including common areas. So the actual built in is even smaller. Now, that's MM.

So in HK, luxury is defined by size.

In Singapore, the lowest life form in property, the 3room HDB flat is larger than an average HK apt.

In Singapore, Luxury is defined by the being private and location. (since HDB houses the vast majority)

MMs fills a niche in the Singapore, the desire for HDB owners to own a piece of private property , with low quantum. There will be demand...


so in spore ... Upgrading doesnt mean going bigger and better location .. but from HDB to condo ... from bigger to smaller

sad

teddybear
29-10-10, 22:31
From bigger HDB to smaller condo why sad? It means the person has made it in life and get condo facilities and better environment instead of dead coackroaches all over on the void deck that will not be swept away until a few days later! (the HDB contractors clean only once a week? - Dengue also become more common in HDB because of this?) :scared-1:


so in spore ... Upgrading doesnt mean going bigger and better location .. but from HDB to condo ... from bigger to smaller

sad

devilplate
29-10-10, 22:32
so in spore ... Upgrading doesnt mean going bigger and better location .. but from HDB to condo ... from bigger to smaller

sad

small hse less hsework mah...every mth can save on part time maid wor:D

u do hsework urself or maid do it?

sh
29-10-10, 22:33
No, it means buying a MM, and staying put in HDB....:)

proud owner
29-10-10, 22:36
small hse less hsework mah...every mth can save on part time maid wor:D

u do hsework urself or maid do it?

actually my wife and I still do our own house work ..

i vacumn, she mops ( or vice versa)

i also iron my own clothings


to us , house chores is just another venue to spend time and do things together ...

of course there are times that we feel lazy and get part time maid to come do it ..

bargain hunter
29-10-10, 22:48
i think its sad too. but my criteria more relaxed than yours lah. 3 bedrooms more than 1200 sq ft is comfortable for me. no need to be 2 bedrooms 1200 sq ft. too luxurious liao hehehe.


so in spore ... Upgrading doesnt mean going bigger and better location .. but from HDB to condo ... from bigger to smaller

sad

devilplate
29-10-10, 22:53
i think its sad too. but my criteria more relaxed than yours lah. 3 bedrooms more than 1200 sq ft is comfortable for me. no need to be 2 bedrooms 1200 sq ft. too luxurious liao hehehe.

waterbank layout comfy for me oredi:ashamed1:

bargain hunter
29-10-10, 22:59
personally, my narrow minded view is that a hdb 5 rm is 1200 sq ft without bay windows and balcony mah. so anything smaller seems like a downgrade. :ashamed1: but that's juz my personal preference. most pple won't mind smaller sq ft. :)


waterbank layout comfy for me oredi:ashamed1:

teddybear
29-10-10, 23:02
Really must depend on the designs! Without the BIG BIG balconies, planter areas, air-con ledges and bay windows, 3BRs even about 1100 sqft also comfortable, but now with all these thrown in, even 3BRs at >1300 sqft also not comfortable (effective usable space machiam <1000 sqft!).


i think its sad too. but my criteria more relaxed than yours lah. 3 bedrooms more than 1200 sq ft is comfortable for me. no need to be 2 bedrooms 1200 sq ft. too luxurious liao hehehe.

bargain hunter
30-10-10, 00:32
yes. but not easy to find. i am fine with 1100 sq ft with good design but that's rare. 1300 with those extras thrown in also can (but psf must discount lah hahaha) but 3 bedrooms smaller than 1100 sq ft not so comfy liao and that's the direction of the new launches.


Really must depend on the designs! Without the BIG BIG balconies, planter areas, air-con ledges and bay windows, 3BRs even about 1100 sqft also comfortable, but now with all these thrown in, even 3BRs at >1300 sqft also not comfortable (effective usable space machiam <1000 sqft!).