Hong Kong homebuyers to face worsening affordability crisis

KUALA LUMPUR (Dec 12): If you think Malaysian aspiring first-time homebuyers have it bad, spare a thought for Hong Kong folk.

The ex-British territory’s property segment will be pushed higher by the wealth generation from its booming stock market, record-low unemployment and high economic growth, the South China Morning Post (SCMP) reported yesterday.

“The dream of owning a home in Hong Kong will become even less attainable for those seeking to get on the housing ladder next year, as prices in the city are forecast to rise 10% to 20%, according to predictions by the city’s two major property consultants,” reported the Hong Kong English daily.

Cushman and Wakefield in its property market review and outlook for 2018 forecast a 10% growth in Hong Kong home prices while JLL said they can potentially increase by as much as 20% next year.

Home prices in Hong Kong rose 11% this year, with the biggest rise seen in nano flats and luxury homes, SCMP reported.

Nano flats are usually less than 200 sq ft and cost about HK$4 million (RM2.09 million). Still very expensive

Hong Kong’s residential prices have gone up 75.9% compared to the market peak in 1997 after the city island was handed back to China, said JLL.

Well, maybe one could try renting? Things are also not too bright for tenants.  

SCMP reported in October that there is not a single flat in a large estate offered below HK$15,000 per month on Hong Kong island.

A 200 sq ft studio in a 30-year-old development in Wan Chai costs more than HK$16,000, reported the paper.