Taiwan’s luxury homes may see demand increase as wealthy Taiwanese return home amid rift with Hong Kong

Hong Kong has suspended operations of its trade and cultural office in Taiwan, a decision sources say was made by the Constitutional and Mainland Affairs Bureau

The move reflects a souring of relations and may prompt some wealthy Taiwanese to leave Hong Kong and head home

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Taipei has been rolling out initiatives to attract Taiwanese manufacturers and bring them back home. Photo: EPA-EFE

Published: 7:00am, 1 Jun 2021Updated: 6:19pm, 1 Jun 2021

Taiwan’s luxury property market is likely to see a mini-boom as wealthy Taiwanese living in Hong Kong head home amid a rift between the special administrative region and the self-ruled island, according to analysts.

Hong Kong has suspended the operations of the Hong Kong Economic, Trade and Cultural Office (HKETCO) in Taiwan, a decision that was, according to sources, made by the Constitutional and Mainland Affairs Bureau, which is in charge of the relationship.

“The closure of Hong Kong’s trade and cultural office in Taiwan is an indication of the rising tension and deteriorating relationship between Hong Kong and Taiwan,” said Maggie Hu, an associate professor of real estate and finance at the Chinese University of Hong Kong.

“It may temporarily lead to the relocation of some wealthy Taiwanese from Hong Kong back to Taiwan. And these relocations will probably cause greater housing demand, increase money flows into Taiwan and boost overall investor sentiment in the Taiwan real estate market.”

Additionally, eight workers at Taipei’s Economic and Cultural Office in Hong Kong have yet to get their visas renewed, meaning they may have to leave the city by the end of the year.

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