Filled with glitzy glass towers and a fusion of Eastern and Western cultures, Hong Kong proudly proclaims itself to be ‘Asia’s World City’ and remains a key gateway to China, as well as a crucial linchpin in world trade.
In recent years, wealthy international property investors, particularly from mainland China, have invested in Hong Kong’s ultra-luxury housing market as part of a diversified asset-safeguard strategy, despite low rental yields of around just 2%, helping to cement the city’s place as the world’s most expensive housing market.
But with thousands of new build homes set to come on to the market over the next couple of months, housebuilders in Hong Kong have begun competing for homebuyers by offering steep price discounts on new property releases, raising the prospect of intensifying price competition as new projects come onto the market.
“Developers will accelerate their flat sales this year. They had deferred the marketing of new project launches after the government suddenly raised the stamp duty in November last year,” said Derek Chan, head of research at Ricacorp Properties.
“Developers are certainly facing pressure on their pricing strategies, especially in areas with various new projects ready for sale,” he added.