In an interview with Mansion Global, Prof. Maggie Hu says, “It is possible for Hong Kong to surpass Monaco to become the place with the most expensive property prices in the world.”
Prices for ultra-luxury units in Hong Kong’s residential market hit a peak in November 2017—literally—when a buyer purchased two units at The Peak, a development at the city’s highest elevation, for a total of HK$1.16 billion. At HK$132,060 per square feet, it set a world record for the price of a condominium or apartment transaction.
Commenting on the city’s skyrocketing real-estate prices, Maggie Hu, Assistant Professor of Real Estate and Finance of School of Hotel and Tourism Management and Department of Finance at The Chinese University of Hong Kong Business School, tells Mansion Global* magazine, “It is possible for Hong Kong to surpass Monaco to become the place with the most expensive property prices in the world.”
At the end of the day, it comes down to a limited supply of developable land. “Only 6.9 per cent, or 77 square kilometers, of Hong Kong’s landmass is zoned for housing, and about half of that is allocated to low-density rural settlements that cannot be easily transacted in the property market,” Prof. Hu adds. “This is a meager amount compared with the land allocated to country parks and natural reserves, which take up about 65.8 per cent of Hong Kong’s land.”… Read More
This article first appeared in Mansion Global magazine’s June 2018 issue. Please click here or the images below to view the media story in print format.
Source: Mansion Global / Huanyuju.com (Chinese)
Date published: 14 June 2018 / 18 June 2018
*Mansion Global is a Dow Jones publication targeting at luxury real-estate buyers. The media publication produces original articles and data analysis about the global real estate market.
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