HK Property Market Resilient Amidst Protests

HK Property Market Resilient Amidst Protests
08/06/2020 , by , in INTERNATIONAL

The future of the former British colony is clouded by China’s introduction of the security bill, prompting the U.S. to threaten removal of Hong Kong’s special status. But, the controversial security law that threatens to upend Hong Kong’s status as an Asian financial hub hasn’t slowed the world’s most expensive real estate market.

Dozens of would-be buyers lined up in the rain last week for a chance to bid on 94 apartments in The Campton project in central Kowloon, with prices starting at HK$6.8 million ($872,400) for a one-bedroom condo. All but one of the units were snapped up in eight hours, bringing in HK$880 million for the developer, China Vanke Co.

On the surface, it doesn’t seem like the best time to buy a property in Hong Kong. However, for some residents, the political and economic turmoil make real estate a better bet than other assets. Data proves property prices have surged 230% since 2000, data from Centaline Property Agency Ltd. show, bolstering the view of many Hong Kong residents that property will always be a haven. Despite a contracting economy, existing home prices have risen 1.2% this year, and are the highest since November, based on the Centaline index.

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