South East Asia Property Awards

Hong Kong property – top tips

Here are ten insider tips for figuring out the Hong Kong property industry.

  1. The recent history of its property market has shown that Hong Kong can be a particularly volatile place for investors to put their money. 2008 has not been the greatest year on record, but it is coming against a back-drop of a stunning 2007 property market surge which saw residential prices climbing by 24.95 per cent.
  2. Hong Kong’s residential prices are now 91.19 per cent up in the five years to January 2008.
  3. Because of Hong Kong’s sprawling residential make-up, it is difficult to define exactly which areas are the most popular in terms of high-end property, given that luxury developments exist just about everywhere. Favoured areas however, include Island East, Happy Valley, The Peak, Hong Kong Island South (Stanley, Repulse Bay, Deep Water Bay), Wanchai and the Kowloon Peninsula – Kowloon Tong.
  4. It must be noted that Hong Kong is not an easy market to enter, given that its high-end residential market is the third most expensive in the world, after London and Monaco.
  5. Foreigners can generally buy properties such as apartments and condominiums in Hong Kong and rent out without restriction. However, residents of some countries – including mainland China – cannot buy real estate in Hong Kong.
  6. A luxury flat in Hong Kong currently hold the record for the world’s most expensive. The 80th floor penthouse in a complex called The Arch, in Hong Kong’s Kowloon area, reportedly sold for $28.8 million or $41,000 per square foot.
  7. Land cannot be purchased freehold, but rather on a renewable leasehold basis. Land leases are presently being granted for 50 years, though in the past they have been issued for 75, 99, or 999 years.
  8. Older leases are generally very simple and contain few obligations and restrictions. Newer leases usually incorporate more detailed restrictions, obligations and development conditions including environmental control.
  9. The Peak became the site of the most expensive residential piece of land in the world when the government auctioned 12 Mount Kellett Road – and it sold for HK$1.8 billion. Sun Hung Kai Properties paid a record HK$42,196 psf, 134 per cent of the opening bid.
  10. High-end condominium units in Hong Kong generally come with a minimum of two car park spaces. Always ask for the car park layout to ensure that you like the car parks location as much as you like its corresponding unit.

Hong Kong condo buying guide
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