Hong Kong occupies “prime location” in Asian real estate survey
Hong Kong has emerged as the hotspot in Asian real estate, indicates survey
Hong Kong has emerged as the topper on the list of cities which attracted high levels of property investments in Asia in the first half of the year, according to a survey. Real estate transactions in the city touched US$8,269 million, a 5 per cent year over year increase. Hong Kong was followed by Tokyo where real estate sales reached US$6,207 million. Shanghai occupied the third spot with investments worth US$5,854 million and Singapore was fourth with investments worth US$5,801. However, the city does not rank high in the next year’s predictions in real estate investments which is expected to be dominated by Melbourne at the first place, followed by Singapore, Shanghai, Ho Chi Minh, Shenzhen and Tokyo.
The figures were revealed in the latest annual property report by PwC in its “Emerging Trends in Real Estate Asia Pacific 2018”. The survey also included studies by research organisation Urban Land Institute (ULI). The study included 600 industry experts and also focused on the future prospects in Asian property. David Faulkner, vice-chairman of ULI Hong Kong and managing director, valuation and advisory services, Asia, at Colliers International said that in spite of a lack of investment opportunities due to high prices and a relatively illiquid market, activity in Hong Kong is increasing.
It was found in the study that the driving factors for the city’s rise in real estate included – land bought by Chinese developers; a belief the market has bottomed out after years of decline; foreign investors looking for other ways to make a profit; and activity in Hong Kong’s secondary CBD in east Kowloon were the key characteristics which contributed to Hong Kong’s rise.
The rise in property sales in the city is driven by mainland Chinese investors looking to move out of the domestic market and seek other locations as well as local buyers who seem to be unmoved by the rise in prices. But things are different for international buyers who are making profit through other ways.
Other real estate opportunities in the city are also emerging in the form of data centres, affordable public housing estates, build-to-rent facilities and student and senior housing.