Property Prices Drop - Has it begun???

[East_coast]

I hate stupid decisions, such as purposefully trying to squeeze more people into an already overpopulated city. She shouldn't be in charge of HK.

She is not. The Liaison Office is...

[civil_servant]

In today’s SCMP there’s another article about the imminent decline in Hong Kong’s property prices. Slowing economy, weak yuan and rising rates (I doubt any material increase will happen) point to a 15% drop, according to CLSA analysts. The only thing I can say is to the renters out there, prepare for monthly fee increases!!!! Landlords must be sweating hard. Doesn’t take much to make a local investor nervous.

https://www.scmp.com/property/hong-k...an-tseung-kwan

[jgl]

Those who invested in the 1,008-unit Upper East development in Hung Hom comprising small apartments ranging from 194 sq ft to 375 sq ft, will receive their keys from the builder, Kowloon Development, in late August. They are expected to suffer the most.

“The smallest flat of 194 sq ft may just go for about HK$10,000 a month,” said Rocky Wong, sales director at Hong Kong-based Centaline Property Agency, who added the new development now has about 200 “pre-lease” listings, or leasing before developments are available for moving in. This will be the lowest total rent for a new flat in the area.

10K a month for less than 200 square feet... does this strike anyone else as overly optimistic or piss-taking?

[freeier]

10K a month for less than 200 square feet... does this strike anyone else as overly optimistic or piss-taking?

overly optimistic i would wager. 200 sqft, generally for the non-locals means a single person home unit.
HH is not that much of a typical expat place. I think most of the expat there are the koreans/Japanese. Korean/Japanese tend to get company sponsored housing and most come with family, so my guess is there are no natural demand from the foreigners on these 200 sqft units.

typical foreigners that will rent such units, from what i have observed so far, are the junior bankers/lawyers... and they conjugate around sheung wan/wan chai.

so again no natural demand for these at HH...

interesting to see how that affect the rest of hk markets.

[hullexile]

10K a month for less than 200 square feet... does this strike anyone else as overly optimistic or piss-taking?

A bargain . It is all just insane. Still if it fell 20% it would be a snip at HKD 8000 per month. I think you could even get two people lying down at the same time.

[jgl]

Ah yes, I had not thought about the source of the quote . The quote should have been disregarded as self-serving BS.

[Mat]

10K a month for less than 200 square feet... does this strike anyone else as overly optimistic or piss-taking?

its got nice lobby so it's worth it.

[madoju]

HK property price will never fall. Unlike any other asset in the world, it can only go up and up and up.

Even during the 2008 GFC, 2003 SARS, 2000 .com bubble, 1997 Asian Financial Crisis it was going up and up and up!

Even during the next major financial crisis, the next SARS-equivalent, the next whatever financial or geopolitical crisis, it will go up and up and up!

Soon yields will be 1 or less% even for mass residential (same as for superlux prop now) but it will still go up up up! buy buy buy!

[mrgoodkat]

The only thing I can say is to the renters out there, prepare for monthly fee increases!!!! Landlords must be sweating hard. Doesn’t take much to make a local investor nervous.

And here I was planning on negotiating a 15% reduction on my rent.

[DimSumBond]

Hey hey. Good luck with that!! Let us know how it goes