Foreign buyers still find premium on Hong Kong property worth paying

It was salutary to step back from Hong Kong's current local "hot house" environment recently, and spend some time in Europe, meeting with international investors.

In particular, it was interesting to listen to external views on Hong Kong as an investment destination or as a base from which to invest in the region, since there is a risk that in the absence of these exchanges we become so enmeshed in immediate issues that we are in danger of forgetting the bigger picture.

Obviously the oft-quoted benefits of the rule of law, freedom of speech, a low-taxation regime, and the relative absence of restrictions on financial flows, are considered important by international investors. However, of even greater significance are the underlying basic fundamentals that form the platform for real estate and other investment in the city.

Of greatest significance is the transparency of the market, which is regarded as second to none; and the access to accurate and current transactional information through the Land Registry and the Rating and Valuation Department.

The outcome is a knowledgeable and "market-savvy" investment community where purchasers and vendors and landlords and tenants and their advisers are able to transact with access to reliable and comparable evidence and information.

Hong Kong also possesses the largest appropriately qualified and experienced group of property professionals in the region and informed opinion on capital and rental value, investment returns, prospects for growth, and market sector performance, is readily available. Furthermore, many of those professionals can also advise on investment outside Hong Kong; and there are many cross-border practitioners who can provide guidance on opportunities and projects across most of the markets in Asia and assist those who wish to invest in any of the mature or emerging economies of the region.