For several years, Hong Kong has ranked top as the having the most expensive housing market in the world. Where its home prices surging at a staggering 25% since March 2016. A survey done shows that a Hong Kong resident earning an annual gross income of 20,000 USD. And this would have to own property or a home worth 360,000 USD. With the reason why property price is skyrocketing in Hong Kong being blamed on the supply and demand, it is also critical to point out that developable land doesn’t come easy in the mountainous terrain which is squeezed between water bodies.

Hong Kong property prices continue to rise even though it’s a bit slower especially July and August this year. Also, the year-old cooling measurement launched by the government started taking effect. Government data showed that home prices shoot by 10% since January 2017. However, secondary residential prices have shot by 11% in the last year. Although the government has tried to put in place this measures to aid in the reversal of the ever-rising property prices, we will not fail to mention that in Hong Kong. Also, the government controls close to a half of public housing rentals and oversees the homeownership purchase programs. This fact only allows the private sector half control over what is currently being experienced in Hong Kong property market. Thus, putting a lot of blame on the government concerning the current situation.

Hong Kong resident can, however, breathe easily because according to Ricacorp Properties director David Chan. Thus, home prices will continue to rise but at a slower pace in the coming months. Property experts are also projecting price gains in the property market to take an opposite turn with the continued implementation of the cooling cycle by the government.

Example

A significant example of the state of things is a four bedroomed villa in a luxurious neighborhood just scooped a shocking $ 149 million. The 853 square meter house came with a pool, garden and elevated and situated at the raised slopes of Hong Kong giving the owner an impressive view of the city. The three-story villa in Hong Kong also comes with two-car parking lot an en-suite bath. Together with a master bedroom and two different dressing rooms. Last year another low-level tycoon bought a house at the peak of Hong Kong for HK$2.1 billion because he considered his HK$ 380 million home to be too tiny.

Inflating price of housing

According to housing and transport minister Frank Chan Fan, growth in prices shot by 0.3% in July. Also, 0.4 in August and shockingly 3.1% in September 2017 and 2.1% in October.  Currently, flats in Hong Kong have been most affected by the inflating prices in Hong Kong’s property market. Flats are covering space less than 430sq ft. Scooped up 0.4% in September alone; this is the greatest gain in all categories of studio flats.

Hong Kong struggles to find strategize to stabilize their hiking prices in the property market. Also, private investors are greedily eyeing the area for profitable ventures as long as they get the necessary tenders to start putting down resident structures.