My Take | Our government is aiding and abetting greedy property developers
Huge price rises for tiny shoebox flats mean Hongkongers can’t afford even the smallest home, while the big developers continue to buy up land
Meanwhile, Developer K Wah was also selling its latest flats at K City in Kai Tak at an average of 11 per cent more than its first batch only a month ago. Recorded sales at both sites had been poor over the weekend. A sign that the market is giving developers the middle finger? Maybe not.
Alto Residences is built jointly by Empire Group Holdings, owned by Walter Kwok Ping-sheung, formerly of Sun Hung Kai Properties, and Lai Sun Development, chaired by Peter Lam Kin-ngok. Lam is also chairman of the Hong Kong Tourism Board.
The average person in Hong Kong no longer can afford even a shoebox; an under 300 sq ft flat recently was on the market for almost HK$5 million. Wealthy Chinese tourists had been among our most reliable flat buyers. That picture has changed, though, since mainland authorities have cracked down on capital outflow in recent months.
While those developers might have miscalculated, their price hikes at the weekend had at least one eye on mainland buyers. In any case, sales may be slow, it doesn’t mean they won’t fetch ridiculous prices in the end.