As property prices keep rising, debate is heating up on whether restrictions should be imposed on outside investors buying flats in Hong Kong.
Research shows more than a third of new luxury apartments sold in the first half of the year were bought by mainlanders - up from about a fifth last year.
Measures such as raising the investment threshold for immigrants or allowing only Hong Kong permanent residents to buy small and medium-sized flats have been suggested as the city wrestles with the conflicting principles of a free market and the need for affordable homes.
The figures indicate mainland buyers have pumped more than HK$12 billion into the overheated market so far this year.
'This is critical,' said Chau Kwong-wing, chair professor of the department of real estate and construction at the University of Hong Kong. 'The transactions of mainland investors have already accounted for a substantial proportion of flat sales. It will be difficult for the government to request developers to provide cheaper flats when selling luxurious flats is such a lucrative business.'
Records received by the Land Registry from January to June show that mainland buyers accounted for at least 35 per cent of 1,012 new flats sold for more than HK$12 million, accounting for HK$8 billion in all. This is up from 22.6 per cent of 1,684 transactions in the second half of last year.
