Hong Kong Real Estate Sector
We all know well that the Hong Kong is very famous for its wide variety of food items and restaurants. Also, the Hong Kong’s real estate sector of the Peak ranked as the 3rd most expensive area in the world with a square foot per unit @ US $2,008. Traditionally, the Hong Kong government has raised revenue from the sale and taxation of land, but not engaged in industry and commerce for profit in the previous decades. The real estate industry in Hong Kong has been a key driver of the local economy for over two decades, helping it to weather the current economic downturn relatively unscathed. For many organizations, real estate and physical infrastructure are major components of operational costs and typically involve significant investments which dominate the balance sheet.
Hong Kong has always had an imbalance of supply and demand of land. The Hong Kong’s economy is classified as a “free economy ” which means anyone with money can buy real estate property and many foreigners have invested heavily in the territory, making real estate sector one of the biggest contributors to economic statistics of the country. The land is essentially rented from the government under a lease, even if one owns the property.
The Property Agency in Hong Kong real estate sector keeps on topping the right lists. Hong Kong enjoys a ‘free economy’ which is a major aspect to help expand and enrich the real estate business. Hong Kong scored highest (92.7 percent) in the area of business freedom but its lowest score (83 percent) was in the area of corruption. The Urban Land Institute and PricewaterhouseCoopers (PwC) put Hong Kong third among the top five Asia Pacific cities to invest in its 2009 report of Emerging Trends in Real Estate in Asia Pacific.
Besides the several feasibilities, presently the real estate sector also faces some unfavourable economic factors that affect the property market; rising cost of living and falling consumer spending. Currently the property market also suffers from low confidence and meager credit supply. It is also facing many challenges such as lack of investor confidence in the residential/commercial market – proliferated by uncertainty over a prolonged economic downturn, downward pressures on developer profit margins, declining rental yields, operating cost reductions, e-business challenges.
Despite this, by facing some challenges and problems the Hong Kong real estate sector has been developing rapidly by using modern marketing methods, technology and financial tactics to expand its business throughout the world, provide employment in the country and sustain the nation’s economy.
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Written by
Discovery Bay Property ; For Sale, Rent, Lease, or Purchase – Headland Homes. www.headlandhomes.hk
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