Amid a stagnating stock market, soaring interest rates, and fears of a US-China trade war, Hong Kong’s exorbitantly expensive condos have lost 20% of their value in just a matter of weeks, according to an HSBC report.
The largest losers in the Hong Kong real estate market dip will be those who recently purchased flats or apartments in older buildings. Typically, when the property market takes a turn for the worse, older tenements take the biggest hit, due to a lack of future marketability.
The South China Morning Post cites a couple examples they were able to dig up:
“A 234 square foot unit at 36-year-old Lee Bo Building in Tuen Mun, which was sold for HK$3.82 million on October 8, is now valued 20 percent lower at HK$3.08 million. In North Point, a 128 square foot unit at 41-year-old Yalford Building, sold on August 29 for HK$3.1 million, is also valued a fifth lower now by the bank, at HK$2.48 million.”
In 2017, Hong Kong’s real estate market was ranked among the most expensive in the world and prices kept rising dramatically.
This is the first significant dip the country’s property market has taken in recent years.
Read the full story here.
For a Thailand real estate lawyer, contact the professionals at Chaninat & Leeds.
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