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Tiny apartment sales soar (Hong Kong)


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Good point.

The Chinese, now they've got HK under control?

You would still think they get them at fire sale prices. 

Plus it's not like mainland China has a dearth of urban living space, what with their uninhabited ghost cities.

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They are just getting ready for the standard of accommodation to expect when moving to London!

Lol in all seriousness though London is mad on UK standards not on global. Hong Kong, Tokyo, San Fran, Singapore knock it out of the park in terms of tiny box price. 

Average price in Hong Kong for a flat is 1.2million usd so 900k GBP. Yes some over priced flats in nine elms are priced like that in London but it's not average. 

Edited by captainb
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HK Chinese buying these flats in London may help solve the crisis in the flats market due to cladding/fire safety issues as if they do not need a mortgage and are stupid enough to not get a survey or ignore their conveyancing solicitor if he warns them of possible issues coming up as no EWS1 survey done yet, then this may save many Londoner's from bankruptcy.

Check out the new Daily Mail campaign to show the scale of the problem which even poor old Jeremy Clarkson is caught up in.

www.dailymail.co.uk/news/article-9109117/Millions-stuck-fire-trap-homes-Grenfell-blaze

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The Chinese, now they've got HK under control?

The question I'd like to have answered is how are the buyers funding their purchase?

For example:  are the flats bought by companies with almost no capital and a huge mortgage from a Chinese state-run bank at a near-zero rate of interest?

Ten years ago, moderately large office buildings on Canary Wharf were valued at £1bn+.  This wasn't real money, however, it was just collateral for banks to borrow from banks. Perhaps something similar is happening with these micro apartments?


 

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The question I'd like to have answered is how are the buyers funding their purchase?

For example:  are the flats bought by companies with almost no capital and a huge mortgage from a Chinese state-run bank at a near-zero rate of interest?

Ten years ago, moderately large office buildings on Canary Wharf were valued at £1bn+.  This wasn't real money, however, it was just collateral for banks to borrow from banks. Perhaps something similar is happening with these micro apartments?


 

Those buildings in canary wharf still are. 

Ultimately they pay a yield that justifys it. Even now rental receipts are above 90% with them sat virtually empty. 

Flat you don't even bother to rent out in nine elms is on the other hand a store of wealth cough money launder

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Generally why would tiny flats/apartments soar in high density city areas?........what will now bring people into cities?.......walk around town now and almost deserted, own it all, free from congestion, liberation, the air is different, smells different, stillness and peace.....where have the people escaped to?😉

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3 hours ago, winkie said:

Generally why would tiny flats/apartments soar in high density city areas?........what will now bring people into cities?.......walk around town now and almost deserted, own it all, free from congestion, liberation, the air is different, smells different, stillness and peace.....where have the people escaped to?😉

They haven't escaped, they've been kicked out.  Build a massive wall and keep them out.

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 I said... "The question I'd like to have answered is how are the buyers funding their purchase?"

On 07/01/2021 at 12:57, richmondtw said:

Why?

Inappropriately tiny apartments with huge prices...  One has to wonder: "who would want to buy one?"

I look at a tiny apartment like that - and I think to myself - there are times in my life where I wouldn't have minded staying in one of those.  It would be at least as good as a student room in a shared house, or halls of residence - for example. I wouldn't mind using one as a hotel room, either.

This forces me to think - if I would only want to rent it (because it would only suit my needs for a short period) I wonder if the issue to drive price is not what I'd pay to use this sort of facility... but how they are owned.  I can imagine these being held as investments - I can imagine the investments using leverage... and... I can imagine the leverage having near zero interest (for large scale buyers with the right market access).   If these apartments are sold to institutional investors who are not price-sensitive, as a consequence of ultra-low funding costs, then there is nothing to stop an arbitrarily high valuation.  I can  imagine a scenario in which the market for specialist interest apartments like this could be cornered.  I can imagine it being used as a mechanism to drive up prices on the basis of nothing more than imagined economic demand to own the assets.  I think it would be interesting to know if there is a bubble generated by specialist finance for a specialist asset.  I think it would be interesting to know which parties hold the real risk that the prices paid were inappropriate.

 

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Hong Kong’s sky-high property prices have made it difficult for the younger generation to get on the housing ladder.

Hilarious how they are still talking about this mythical housing ladder. Was the article written by a bot? 

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