One of the ironies of the Hong Kong property market is that prices keep going up at a time when transaction volumes are shrinking. A report from Ricacorp Properties says the average profit for secondhand homes sold in May was a staggering 53.3 per cent, the second successive month of historical highs. The same company also reported that the transaction volume for 50 major private housing estates reached a 19-week low.
The reasons why fewer people are entering the market are well documented, particularly because of the euro-zone debt crisis. Nevertheless, the global economic environment is contributing to a key attraction for property buyers - low mortgage rates. Many investors more than cover their mortgage payments with the rents they collect, making real estate an attractive investment vehicle in terms of yield.
In this issue of LuxeHomes, our cover story looks at what lies ahead for the property market as Leung Chun-ying takes office as chief executive on July 1. Although there are likely to be changes, many experts believe stability will remain a priority.