How crazy rich Hongkongers keep prime property prices high

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Property prices in the Mid-Levels and other core districts are unlikely to experience corrections until the very rich lose money. Photo: EPA-EFE

Published: 5:32pm, 6 Sep 2018Updated: 5:32pm, 6 Sep 2018

Despite all the warnings about a correction, we may never really see prices of prime property in the Mid-Levels or other core districts in Hong Kong drop, all because of the limited supply (“Hong Kong’s third-richest man joins chorus of warnings about property market”, September 4). Thus, in case of a property price correction in the city, driven by fundamentals such as interest rate hikes and a slowing economy, prices in areas like Tung Chung and other outlying districts further away from the city centre may fall more than in prime locations.

Nevertheless, I don’t see a panic sell-off happening unless we see millionaires in Hong Kong lose their fortunes overnight. In order for Hong Kong to experience a property crisis, the economic slowdown needs to hit businesses hard and cause job losses. That would be the only reason property prices would fall, maybe even in core areas.

Until the very rich lose money, only the weak will sell in panic. This is and always will be a city of millionaires. Interest rates don’t matter to the rich, neither does a US-China trade war. Whatever the drop in prices, there will always be a wealthy person next door waiting to snap up the bargain.

Rishi Teckchandani, Mid-Levels