The Strategist

Hong Kong real estate market on decline because of protests

12/17/2019 - 09:41

Since the beginning of the year, the number of elite real estate purchase and sale transactions in Hong Kong has decreased by 34%, the South China Morning Post reported citing data from the Centaline Property real estate agency.

The publication explains the fall in demand by mass protests that have not ceased in the special administrative region since the summer.

So, over the past 11 months, the total amount of transactions with apartments starting from $ 2.5 million amounted to $ 17 billion. According to the realtors, mass protests scared away many wealthy home buyers from mainland China. “They have financial capabilities, but they are not in the mood to buy real estate in a megalopolis in the current market conditions,” one of the realtors believes.

The real estate agency notes that developers will accelerate the sale of luxury real estate next year at attractive prices amid growing competition for buyers. According to the results of 2018, housing in Hong Kong for the ninth consecutive year remains the most expensive in the world.

Recall that in Hong Kong since June, thousands of protests have continued, the original reason for which was the extradition law. Despite the repeal of the bill, protests continued. Their participants demand an investigation into the actions of the security forces during the rally, the resignation of the head of the Hong Kong administration and the reform of the electoral law.