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E Europe Property Prices Exploding While Hong Kong Crashes

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https://registration.ft.com/registration/ba...000e2511c8.html

Property prices leap in eastern Europe

By Steve Johnson in London
Published: August 13 2006 17:50 | Last updated: August 13 2006 17:50
Property prices are rising faster in the buoyant economies of eastern Europe than anywhere else in the world, according to a global index compiled by Knight Frank, the UK estate agency.
However, Japan continues to battle against property price deflation of 2.7 per cent, even as its central bank has started to raise interest rates.
Prices are also falling in Hong Kong as a powerful boom has turned to bust.

World record HPI in E Europe while the Far East sets off the great HPC. :blink:

Edited by Realistbear

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I live in Hong Kong.

I can tell you right now - property prices are not 'crashing'.

They might be 'slipping' in some areas of Hong Kong, but there is certainly no 'crash' to speak of.

Maybe they are talking about the future?

Regards.

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I live in Hong Kong.

I can tell you right now - property prices are not 'crashing'.

They might be 'slipping' in some areas of Hong Kong, but there is certainly no 'crash' to speak of.

Maybe they are talking about the future?

Regards.

How free is the press in HK these days? IN the UK the press will not admit to a drop in house prices very readily. The propaganda is still powerfully conrtrolled by the vested interests and you rarely see much that is anti-house prices as the central government's future depends on a crash being averted.

The article that says house prices are gong down in HK comes from the Financial Times which is perhaps more free of VIs than most as they have a relatively small property advertising section and a lot of credibility to lose if they cover up the truth. The other papers, such as the Express, Sunday Times etc. would probably not lose much credibility as original and serious financial articles are rarely to be found within their pages.

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How free is the press in HK these days? IN the UK the press will not admit to a drop in house prices very readily. The propaganda is still powerfully conrtrolled by the vested interests and you rarely see much that is anti-house prices as the central government's future depends on a crash being averted.

The article that says house prices are gong down in HK comes from the Financial Times which is perhaps more free of VIs than most as they have a relatively small property advertising section and a lot of credibility to lose if they cover up the truth. The other papers, such as the Express, Sunday Times etc. would probably not lose much credibility as original and serious financial articles are rarely to be found within their pages.

Fair question - how free are the press in Hong Kong?

Well put it this way - the press managed to report the 65% fall in property prices in 1997-98 - and they also managed to acurately report the fall in property prices during SARS, (Spring 2003).

So I can't see why the press wouldn't report any differently this time around? Certainly there isn't much in the way of 'property prices crashing' in the press at the present time.

The real test of course, is to pop into your local 'Centaline' or 'Richacorp' estate agency here in Hong Kong to see what asking prices are doing - yes there is some slippage of the asking prices - but I can't see any dramatic fall though.

Did you know - you can read previous 'property transactions' on-line on most of the major estate agencies websites - the property market, (at least the second hand market) is quite transparent really.

Regards.

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Property prices continue to gently slide (for the past 18 months) here in Hong Kong.

Impressive records are available from Centaline (one the biggest Estate Agents in HK). Here is an example.

I think the slide is due to the Hong kong dollar being pegged.

Hong Kong flat prices

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I also live in Hong Kong and was surprised what I read in the FT article.

HK is much smaller than the UK and the structure of the property market is very different. This is an extremely investment driven market and sentiment is everything and although "Units" have been very popular in the last few years they now appear to have come off the boil. There is the potential for a dip in the market with so many speculators and rising rates (not necaessarily needed but pegged to the US Dollar) but none as yet. It is unlikely investors will allow a crash to happen as there were killings to be made very recently as the market recovered from SARS. What is noticable though is how data on price trends is heavily determined by the luxury market, which 99% of people will never get a sniff at. This appears similar to the UK whereby the London market has enormously impacted national data. However "Cheap" homes are still available unlike the UK.

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Guest grumpy-old-man

Gwailo & dessie123

do you both have property in HK & when did you buy ;)

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The article that says house prices are gong down in HK comes from the Financial Times

Oh, so it must be right!

Guys - I wouldn't panic sell just yet - this is another typical RB story - fires the first shot then backs off at the first reply ;)

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Gwailo & dessie123

do you both have property in HK & when did you buy ;)

Na - I never purchased property in HK.

It was always 'risky' back on the early 1990's - Hong Kong property has proven itself to be a road to slavery in 1997/98 for those with negative equity.

I agree - some people did very well out of the HK property market - but it has always been a bit of a gambler's market.

Anyway, I will be leaving HK for another South East Asian location very shortly.

Regards.

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Gwailo & dessie123

do you both have property in HK & when did you buy ;)

Have considered it but agree with Gwailo. Its a major gamble here! Price drops up to 70% are still very fresh in the minds of local investors and too many people are in the market for a quick buck! However, I have two friends who made about 1 million HKD (approx 70K) in under a year by turning a unit during the recent bounce. For the long term though you dont get much for your money here and it can be a big risk.

Having said that I left London 4 years ago due to becoming a second class citizen (ie non home owner + no hope) and feel opportunities do exist for a great life in asia with some mobility and good timing.......

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Have considered it but agree with Gwailo. Its a major gamble here! Price drops up to 70% are still very fresh in the minds of local investors and too many people are in the market for a quick buck! However, I have two friends who made about 1 million HKD (approx 70K) in under a year by turning a unit during the recent bounce. For the long term though you dont get much for your money here and it can be a big risk.

Having said that I left London 4 years ago due to becoming a second class citizen (ie non home owner + no hope) and feel opportunities do exist for a great life in asia with some mobility and good timing.......

I live in Hong Kong too and agree that you can make money here but it takes a lot more hard work to find the right property than in the Uk and its a bit riskier too (the prices being so high). You need to be good at your job to stay here but the rewards are worth it.

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Hong Kong is indeed a fantastic place - excellent in terms of career prospects and the ability to 'save' most of your disposable income, (if you want), you can't do that in the UK.

However, I have always considered Hong Kong as a 'profit centre' - a place to make money but never as a 'cost centre' (i.e. a place to spend your life savings & settle down).

Hong Kong has always had a bit of a 'temporary' feel about it for me - a place to come for a few years, make a few Quid & then move on - mind you I have been here for 17 years now, finally off next week!

As for Hong Kong property - you either have to be very brave or have come to the conclusion that this town is the right place to spend the rest of your life! (It is very risky playing the property game in this town).

As another poster has mentioned - there are far better places in Asia to invest your money in property than than Hong Kong - and a good quality of life to be found in many countries in the region.

Regards.

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Hong Kong has always had a bit of a 'temporary' feel about it for me - a place to come for a few years, make a few Quid & then move on - mind you I have been here for 17 years now, finally off next week!

I agree, I only felt settled here when I bought my property. I've only been here 7 years, now saving like mad. Good luck in your move.

As for Hong Kong property - you either have to be very brave or have come to the conclusion that this town is the right place to spend the rest of your life! (It is very risky playing the property game in this town).

I looked and rejected buying for years when the prices were too high, all the time feeling I shouldn't stay here.

As soon as the prices dropped (SARS), I stepped in.

Buy low sell high, you can't go wrong.

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Hong Kong is indeed a fantastic place - excellent in terms of career prospects and the ability to 'save' most of your disposable income, (if you want), you can't do that in the UK.

However, I have always considered Hong Kong as a 'profit centre' - a place to make money but never as a 'cost centre' (i.e. a place to spend your life savings & settle down).

Hong Kong has always had a bit of a 'temporary' feel about it for me - a place to come for a few years, make a few Quid & then move on - mind you I have been here for 17 years now, finally off next week!

As for Hong Kong property - you either have to be very brave or have come to the conclusion that this town is the right place to spend the rest of your life! (It is very risky playing the property game in this town).

As another poster has mentioned - there are far better places in Asia to invest your money in property than than Hong Kong - and a good quality of life to be found in many countries in the region.

Regards.

Gwailo,

Why are you leaving HK after so long and where are you heading?

I ask because Ive thought about moving in a few years but was unsure where might provide the best quality of life/cost ratio. Im am now convinced Asia provides some wonderful possibilities.

Regards

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Gwailo,

Why are you leaving HK after so long and where are you heading?

I ask because Ive thought about moving in a few years but was unsure where might provide the best quality of life/cost ratio. Im am now convinced Asia provides some wonderful possibilities.

Regards

I'm off to Singapore, (initially), although the longer term plan is to 'settle' in Australia.

Hong Kong has been good to me - I still love the place, but a new baby has changed my views about this town for the long term - air polution issues being a major factor of course.

As for places which provide the best quality of life/cost ratio - I think Singapore offers much in this respect, (whilst you are still working), but for retirement - Thailand or Malaysia are still the best!

Japan isn't to be overlooked either - but a much more challenging environment to live culturally - you would need to learn the language & adapt much more than say a place like Singapore or Malaysia.

Good luck to all!

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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