Hong Kong Real Estate Investment is Risky Decision

  • Advice

Hong Kong Real Estate ranked second most expensive property after London in the world. It is the Small Island (1,106 square kilometers) with 7 million population ranks as the 4th most densely populated among sovereign states. There are a lot of factors responsible for such drastic increase in Hong Kong Real Estate prices such as huge demand of property from mainland buyers’, Chinese mainland Real Estate developers are paying high prices for residential land, and Hong Kong considered as the tax-free economy in the world. The survey conducted that average residential property cost 18.1 times gross annual median income of the resident. For example, if someone earns $ 50.000 per annum, the apartment cost of their property would be $ 900.000. Consequently, it is almost a mere dream for newly couple married to buy a Hong Kong residential property. According to the government research department, only half of the resident owns their own apartments as compared to Taiwan (85%) and Australia (67%).

The article provides the following reasons that to buy an apartment in Hong Kong is not a right decision for a resident, mainland people, and the foreigners:

  • Outrageously Expensive Condo
  • High Living cost 
  • Miscellaneous

Outrageously Expensive Condo:

As earlier mentioned, that for Hong Kong middle-class family is a dream of owning a Condo is still dream. According to the real estate researcher, it is expected to have work for more than twenty-eight years before buying a condo. It is because the Hong Kong Real Estate market is concentrated in the hands of few such as strict control of local government, real estate developers, and the certain business individuals. As a result, Hong Kong, real estate prices, are tripled from 2004 to 2016. Recently, China morning post claimed that two developers from mainland China invested a record transaction $ 2.17 billion for the residential real estate. Such an abrupt increased in real estate effects the smaller apartments with a huge rise in prices.

  • Low supply real estate and high demand 
  • Abrupt increase interest of Hong Kong Real Estate from Mainland buyers and developers

Hong Kong ranks as the 4th most populated sovereign states with approximately 7 million residents living in the 1,106 square kilometers.

High Living cost:

Costs of livings are quite high in Hong Kong for expatriates. One key determinant of high cost there is accommodation. According to the Economist Intelligence Unit survey, Hong Kong is ranked as one of the expensive city in the world regarding the utilities (i.e., bread, coffee, milk, etc.,), petrol, and cigarettes. The governmental survey found that increasing cost of livings and real estate prices directly inversely affects the number of tourist’s rate and the foreign investment. The persistent decrease in Chinese RMB is attracted a lot of investor because of relative lower cost of livings.


Hong Kong is an expensive city because of its skyrocketing Real Estate prices and the high cost of livings, but this world’s economic hub has scarce sports stadiums (i.e., basketball, soccer, hockey, etc.). Hong Kong is far beyond the Technology cities like Tokyo, Seoul, and London. The quality of life is not high as the high density of population and complex mass transportation system of the city. The Hong Kong has terrible weather with limited chances to see the blue sky. The city has set standards for livings for each $ 3000/per person which included housing rent, food, transportation, and miscellaneous. According to happy index, Hong Kong ranked as 72nd among 158 countries in the world. The people are less happy day by day because high standards set by the society. If you want to buy a real estate Tokyo is a better decision because of bigger and cleaner than Hong Kong.

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