Property News

Investors keen on Kong Hong despite slowdown

Despite the market's slowdown, investors remain keen on Hong Kong property, according to Savills.

The firm says that pent-up capital is still being spent on properties deemed suitable by investors despite the overall sluggish sentiment in Hong Kong.

Indeed, since the start of 2014, Savills Hong Kong and Macau have completed almost HK$15 billion worth of deals.

Raymond Lee, CEO of Greater China, comments: "Weakened market sentiment and the double stamp duty introduced by the government have dampened the property market, yet deals of huge amounts are present in the market."

"I trust that other departments will continue to offer their unparalleled and professional services to our clients in the remainder of the year."

Indeed, while Hong Kong's economy shrunk 0.1 per cent in the second quarter of the year, property prices continued to climb 3 per cent, with apartment prices now 44 per cent higher than their 1997 peak.The low interest rate continues to fuel demand, with limited potential for future supply continuing to push up values.

"We have three [indexes]: one is the whole market, one measures small units and one measures high-end units," Sandia Lau, a director at Centaline Property, told the Wall Street Journal. "All of them are at a record high."