A controversial security law that threatens to upend Hong Kong’s status as an Asian financial hub hasn’t slowed the world’s most expensive real estate market.
For some residents, the political and economic turmoil make real estate a better bet than other assets. Last month,Sun Hung Kai Properties Ltd.sold 97% of its 298 apartments at Wetland Seasons Park worth almost HK$2 billion in one day, according to the developer. Over the weekend, Sun Hung Kai sold more than 90% of 209 units in the same development, though sales were slow at a project built by China Evergrande Group.
The numbers back her up. Property prices have surged 230% since 2000, data from Centaline Property Agency Ltd. show, bolstering the view of many Hong Kong residents that property will always be a haven. Despite a contracting economy, existing home prices have risen 1.2% this year, and are the highest since November, based on the Centaline index.
Even as prices and sales have dropped in many global markets such as London and Singapore, Hong Kong recorded 6,885 property deals in May, a 12-month high as the city eases pandemic measures. Hong Kong remains the world’s most expensive place to buy a home, according to a report by CBRE Group Inc. published Monday. An average property in Hong Kong costs $1.3 million, topping Vancouver, Los Angeles, Paris and New York.