Hong Kong, Macao and luxury: real estate market between uncertainty and madness
Over 100 new luxury units are being built in the most beautiful residential areas of Hong Kong. Despite this, however, it seems that for the luxury property market, there have been some collapses in terms of prices.
The levels of the withdrawal of prices reach about 4.6%, arresting a full 28 months of uninterrupted growth.
If we refer to the previous situation in the real estate market in 2016, it is immediately known that, in that time horizon, rate hikes were recorded also due to the Brexit which, even if geographically distant, weighed on the Asian market to such an extent to report a loss of 10.1% of invested capital.
Even the tense relations with the United States have certainly not helped, bringing to a standstill for the '' standard '' Asian residential brick.
The main buyers that allow Hong Kong to stay afloat have been and continue to be liquidity-rich investors who decide to acquire the home of their dreams, and who do not allow themselves to be influenced by the negative sentiment among wealthier investors.
Another element that clearly played a fundamental role in this sector was undoubtedly the gaming industry, from the construction point of view. In 2018 many gaming centers were built and the economic indicators experienced positive and uninterrupted growth throughout 2018.
In particular, in the Macao market, the total volume of residential transactions and have not been positive for the whole of last year, with a margin exceeding 10,450 sales contracts. The assets of the standard middle-class residences increased by 3% in 2016, by 5% in 2017 up to 2018, with a good 7.7%.
The demand for rents remains a positive constant, probably given by the annual presence of many tourists, especially young people who want to stay temporarily abroad or learn one of the most fascinating and ancient languages in the world.
In fact, thanks to the increase in manpower, the residential leasing circuits have undoubtedly identified a new potential segment of investors, who, whether they like it or not, will necessarily have to buy a property.
In addition, on the supply side, more than 30 projects were released for the construction of 2747 residential units for a total of 322,055 square meters of surface area. The pre-sales operations have already been inaugurated in December 2018, with an increasingly blurred border between the number of properties and the quantity requested.
And what is expected for 2019? The volume of transactions could remain stable, without taking off as in previous years, otherwise, the intrinsic value of the transactions could register a slight decline.
But prices, it seems that they will not undergo any particular changes, given however the coexistence of several factors that have a significant impact on all fronts.
What to say, it seems that the uncertainty and inability to provide clear lines for the future of this country.
The levels of the withdrawal of prices reach about 4.6%, arresting a full 28 months of uninterrupted growth.
If we refer to the previous situation in the real estate market in 2016, it is immediately known that, in that time horizon, rate hikes were recorded also due to the Brexit which, even if geographically distant, weighed on the Asian market to such an extent to report a loss of 10.1% of invested capital.
Even the tense relations with the United States have certainly not helped, bringing to a standstill for the '' standard '' Asian residential brick.
The main buyers that allow Hong Kong to stay afloat have been and continue to be liquidity-rich investors who decide to acquire the home of their dreams, and who do not allow themselves to be influenced by the negative sentiment among wealthier investors.
Another element that clearly played a fundamental role in this sector was undoubtedly the gaming industry, from the construction point of view. In 2018 many gaming centers were built and the economic indicators experienced positive and uninterrupted growth throughout 2018.
In particular, in the Macao market, the total volume of residential transactions and have not been positive for the whole of last year, with a margin exceeding 10,450 sales contracts. The assets of the standard middle-class residences increased by 3% in 2016, by 5% in 2017 up to 2018, with a good 7.7%.
The demand for rents remains a positive constant, probably given by the annual presence of many tourists, especially young people who want to stay temporarily abroad or learn one of the most fascinating and ancient languages in the world.
In fact, thanks to the increase in manpower, the residential leasing circuits have undoubtedly identified a new potential segment of investors, who, whether they like it or not, will necessarily have to buy a property.
In addition, on the supply side, more than 30 projects were released for the construction of 2747 residential units for a total of 322,055 square meters of surface area. The pre-sales operations have already been inaugurated in December 2018, with an increasingly blurred border between the number of properties and the quantity requested.
And what is expected for 2019? The volume of transactions could remain stable, without taking off as in previous years, otherwise, the intrinsic value of the transactions could register a slight decline.
But prices, it seems that they will not undergo any particular changes, given however the coexistence of several factors that have a significant impact on all fronts.
What to say, it seems that the uncertainty and inability to provide clear lines for the future of this country.
