When people talk about Hong Kong, they usually mean the metropolis of the same name. In fact, this administrative unit has four parts - Hong Kong Island, which is also called Xiangangdao, Kowloon or Kowloon Peninsula, the so-called New Territories and more than 250 small islands. From the middle of the 19th century, for 156 years, Hong Kong was a colony of Great Britain, and only in 1997 did it transfer to China the right to dispose of this territory on the shores of the South China Sea. As a result, Hong Kong became a special administrative region of the PRC with a high degree of independence, including in the sphere of economics and the judiciary. The Asian financial crisis of 1997 and the outbreak of SARS in 2003–2004 had a very negative impact on the economy of the region, but Hong Kong held out and, after some recession, regained its lost ground. Now its role as an international financial and business center is growing, and economic growth is stable and has been at 6% for the last four years. Hong Kong's ties with mainland China have proven beneficial to both sides and have grown significantly over the past few years. Hong Kong provides financial services to China in return for the support of the Chinese authorities. For many years, the PRC has been the largest trade partner of Hong Kong: for example, in 2006, 46% of the region's trade turnover fell on China. As a result of the recent relaxation of restrictions on entry to China, the number of tourists coming from the mainland to Hong Kong rose from 4.5 million in 2001 to 13.6 million in 2006, more than any other country combined. Capital of Hong Kong The local real estate market has become one of the fastest growing sectors of the Hong Kong economy since it became part of China. Thanks to its thriving economy, Hong Kong has been able to weather the credit crunch with minimal losses, while in many global markets this downturn has caused many negative consequences. Dow Jones Market Watch specialist Craig Stephen notes: “Today's global real estate crisis does not seem to have had an impact on Hong Kong - despite the fact that investors remember well the collapse of the local real estate market in 1997. Experts say that after analyzing the results of 2007, there are two things to be sure about the region: the stability of the Hong Kong real estate market and the strengthening of the yuan. " “Thanks to the recent decline in mortgage rates, the number of transactions for the purchase and sale of real estate in the last quarter of 2007 became as high as ten years ago,” the expert adds. - Investments in Hong Kong are now devoted not only to numerous analyst reports, but also magazine articles and materials on the front pages of local newspapers. Part of the hype has to do with the incredible profits, stories of which fuel investor interest. It is difficult to remain indifferent to the stories of how apartment owners went on vacation for a couple of weeks during the Christmas holidays, and when they returned, their home value rose by 1 million Hong Kong dollars (1 HKD = 7.79 USD), or 15%. " And this is not the only case where owners suddenly receive huge income. Knight Frank argues that the record for the purchase of a luxury home in the Asian region was set in late 2007, when the Indonesian investment fund De Monsa bought House 15, one of the buildings of the Severn 8 complex in The Peak, Hong Kong, for $ 31 million, then is at a price of about $ 7000 per 1 sq. m. The profit of the seller, a businessman from Southeast Asia, who owned the house for only a year, amounted to $ 19 million. Each has its own luxury In Hong Kong, only a quarter of the territory has been developed, more than half is given over to national parks and reserves. Therefore, land suitable for construction is always highly valued here, and new urban projects are in great demand. The International Herald Tribune recently published the following review: “It seems that everyone here is looking for housing, while finding it is rather difficult. The city is bounded by steep slopes and Victoria Harbor, so the buildings get taller and taller here, forming a forest of skyscrapers. In this metropolis, a 50-storey building with luxury apartments is not uncommon. The most expensive housing is considered to be the apartments on the upper floors, which offer stunning views on clear days. " In recent years, to fill the land shortage, the government has set aside a section of the coast for development, while receiving funds from developers and strengthening its image as the largest landowner in Hong Kong. The city needs more and more housing units, which often affects the area of objects, and the definition of luxury housing adopted here may seem dubious to those who are used to very spacious houses and apartments. According to the government's official classification, any apartment over 100 sq. m are luxury housing. For the same reason, private houses are rarely offered to buyers, and if they appear on the market, they are sold at astronomical prices. The luxury real estate sector is booming. In areas such as Island South, Pokfulam, Happy Valley and especially the highly sought after The Peak, the increase in its value is quite significant. According to the Colliers consulting company, the average cost of luxury housing grew by 9.4% qoq and by November 2007 amounted to $ 1,500 per sq. M. m. It is expected that for the current year, rental rates and housing prices will rise by 15-25%. However, with high inflation in the country and a significant reduction in interest rates in the United States, growth rates in the real estate market may exceed the expectations of players. " Colliers also notes that strong stock market prices have also helped strengthen the luxury real estate sector, boosted by strong buying interest and profits from investments in the Hong Kong real estate market. Think Before Selling Those planning to conduct real estate transactions in Hong Kong should remember, firstly, that you can sell a home very quickly, and secondly, that the prospects for renting out real estate are very attractive. Due to strong demand for real estate, mainly from employees of financial and legal companies, on average, rents for luxury properties increased by 4.8% every quarter and at the end of November 2007 reached $ 17 per sq. M. m per month. According to Knight Frank, in 2007 the average price for luxury housing in the city increased by 32.6%. Island South leads with 44.1%, followed by Mid-Levels with 39.7% and Pokfulam with 31.5%. Rentals for real estate in these areas increased by 5.6% in December 2007, after rising 20.3% in the first 11 months. The most intense growth in December was observed in The Peak, where the rate increased by 9.9%. It is followed by Jardine's Lookout (Happy Valley) at 5.1% and Mid-Levels at 4.6%. Colliers International paints a rosy picture, especially when it comes to investments: “Buyers are also playing into the hands of the attractive mortgage terms offered by local banks. On December 11, 2007, the US Federal Reserve cut interest rates on loans, and the next day the big banks in Hong Kong followed suit. Now the optimal offers from banks for mortgage lending are usually about 4.25% per year. " Knight Frank experts predict that rates in Hong Kong by the end of 2008 may drop to 2.75%, and this will undoubtedly become a weighty argument in favor of purchasing local housing.
