More mainland Chinese are buying property in Hong Kong due to attractive rental returns, lower interest rates and the fact non-residents no longer have to pay stamp duties on housing purchases, the South China Morning Post reports.
The SAR’s various talent schemes are also contributing to an influx of mainland Chinese, whom property experts say are opting to buy rather than rent. Some investors are also looking to establish a foothold in the city that would enable their children to study at universities there.
One such buyer told the Post that many mainland families are shopping for property for that reason, rather than to make a big profit. “Properties are cheap now as prices have gone down a lot from the peak,” she said, “Interest rates are also going down, but rents are performing well. It’s a good time to invest in appropriate projects.”
[See more: Is Shenzhen’s property market recovering?]
Hong Kong scrapped all its restrictions on property transactions at the end of February in a bid to resuscitate its ailing housing market. In the immediate aftermath, property experts described the measures as “a shot in the arm” for the sector in terms of transactions, though not for prices – which remained flat.
In March, mainland Chinese were reportedly accounting for up to one-third of new property sales – with some buying as many as eight properties at once.
This trend has continued, according to Norry Lee, senior director of the project strategy and consultancy department at JLL Hong Kong. Lee told the Post that the number of mainland Chinese buyers of Hong Kong properties had “significantly increased” since March. He noted that building projects like Sun Hung Kai Properties’ Cullinan Sky in Kai Tak and CK Asset’s Blue Coast in Wong Chuk Hang were primarily targeting such investors.
