Hong Kong Property Prices and Park Island Property Price head towards new historical highs
Based on the latest Hong Kong property data Centadata property price graph Hong Kong property prices continued their upward climb, heading towards all time historical highs.
|Hong Kong Property Price Graph Nov 2016|
Park Island apartment prices rose over 6% last week and are now also again approaching historical highs.
|Park Island Property Price Graph Nov 2016|
It is very obvious that were not for the recent additional "cooling measures" implemented 5 November 2016 (see New HK Stamp duty for property) prices would have reached absolute new highs by end of 2016.
It now remains to be see what effect the recent cooling measures, as well as the effect of the election of Donald Trump on HK Property. As I have explained in prior posts, from a valuation perspective, I would look at HK property as incorporating the value of every type of cooling measure, which will be "realized" on any eventual reduction of such measures.
I would expect to see somewhat of a short term dip in prices as the latest round of cooling measures take effect, but who knows, sometimes playing with the market can have unintended consequences, one of which is that money will flow to property which represent better value and/or are still relatively affordable by first home buyers (and clearly Park Island is in that category).
Finally, again related to the Trump effect, almost all currencies in Asia have fallen sharply to the HKD. So to the extent anyone who is a HK property owner doing a HKD value comparison, you will you have made significant amounts of money if you where to convert the value of your HK apartment to a non-HKD currency. Great for anyone from HK looking to sell up and move overseas, for example to Thailand or Malaysia.