Mainland developers loosen purse strings to snap up prime real estate in Hong Kong
Land prices in city still much lower than in top Chinese cities, say industry experts
Cash-rich developers from the mainland are on a shopping spree in Hong Kong and are leaving no stone unturned to corner prime real estate in the city.
Though the shopping spree comes at a time when property prices on the mainland have recovered, experts said developers are still bullish on Hong Kong realty as it offers better returns amid yuan and land price fluctuations on the mainland.
Developers from the mainland accounted for about HK$13.8 billion, or 42 per cent of the HK$30.6 billion revenue earned by the Hong Kong government from residential land sales till August 8 this year, according to data compiled by the South China Morning Post.
“Apprehensions about the yuan volatility are prompting mainland developers to increase their overseas investment and Hong Kong is fast emerging as one of the most preferred destinations,” said Vincent Cheung,executive director for valuation and advisory services in Asia at Colliers International.