Hong Kong is not your typical housing market — it’s a place where the rich Chinese acquire assets as investments and it looks as though it could be in a precarious position as long queues of property buyers can be a harbinger of doom.
That said, predictions that the HK property market will crash have been proven wrong in recent years. China is the country is the world’s second biggest economy and continues to attract investment — with HK being the only place in the country that offers some form of a stable market (it remains to be seen for how long.) Demand is driven by low interest rates and currency stability — but the supply of land continues to diminish.
To put it simply, house prices have tripled from 2003 to 2015. Construction of residential units is strongly on the rise. An average apartment costs US$2,419.44 per square foot (sq. ft.).
Meanwhile, rental yields are generally falling — to around 2% to 3%.There are no restrictions for non-Chinese who want to buy a house in Hong Kong. However, not everyone is equally warmly welcomed in the SAR — citizens of Afghanistan, Albania, Cuba, North Korea and mainland China are less popular than others. Chinese from the mainland can buy a house if they are permanent residents of another country aside from the ones mentioned above.