Park Island, Ma Wan, Hong Kong

My last post on the Park Island blog was titled  Well that didn't take long . I was referring to the admirable community spirit of Ma Wan residents cleaning up after Hong Kong got hit my massive typhoon, but I could just as well have used that same title for the subject of today's topic, which is about the rapid recovery of the Hong Kong property market. Take a look at the graph of Park Island property prices for 2019: Park Island Price Graph 2019 Look at that massive spike that has taken place over the last few weeks. This price increase has been mirrored across the Hong Kong property market generally, but the upward trend for Park Island has been particularly sharp. Why? Well, at a general level, we have the US Fed reducing its outlook for rate rises in 2019. This is positive globally for assets (as assets are usually financed using debt, and if the cost of debt is lower then assets become more "affordable"). In Hong Kong this effect is even ...

My last post,  park island property prices hit fresh.high , published in November 2017 noted that the p rice of property for sale on Park Island has followed a relatively constant  growth trend  since 2009.  At that time, prices for Park Island apartments had just hit a fresh record level of $9619 psf. Today, prices are around 5% higher, at $10,085 psf (not just for Park Island but for the Hong Kong property market in general). The most recent property price graph, along with my "back of the envelope" doodles,  show where prices might go over the next 4 years. A price level of $13,000 psf by 2022 is certainly not out of the question. Property Price outlook next 5 years (Park Island, Hong Kong) As I have mentioned in previous posts, with every year of rising GPD in China, there is an increased cash-pile and consequent increased purchasing power, from the world's second largest economy, with over 1 billion people and a rising middle cl...