The latest official economic figures reveal that the property sector is going through testing times. But if investors choose wisely, real estate remains a fruitful place to invest despite the government's pledge to increase supply.
Third-quarter government statistics show Hong Kong's economy grew 4.3 per cent year on year, but only 0.1 per cent over the previous quarter. Tellingly, property prices fell 2 per cent from July to September, but the leasing market was buoyant, with rents rising 2 per cent. The average rental yield for residential property rose from 3.3 per cent in June to 3.4 per cent in September. If you are looking for yield, that is better than many other investment vehicles, especially as the government says it believes 'the major advanced economies are likely to maintain an ultra-loose monetary policy for a prolonged period', meaning interest and mortgage rates will remain very low.
As buyers become more strategic, developers are launching projects to meet their exacting needs. In this issue of LuxeHomes, we examine how new projects are outselling secondary properties. We also have a special report on electrical appliances, with stories ranging from comforting news on the latest massage chairs to how high-end speakers are embracing the mobile platform.