Residents of Hong Kong are searching for houses all around the world as stressed anti-government protests seem set to drag to the new year.
Real estate agents from Australia to Canada have noticed a surge in interest over the past couple of weeks, together with the desire to secure a safer future prompting many to look past the Asian financial hub.
Former Brookvale Park, new condo developed by Hoi Hup & Sunway a KI Residences contractor.
Pro-democracy protests that erupted in June have resisted the town’s market and caused enormous inconvenience to people’s daily lives. The authorities have fired more than 16,000 rounds of tear gas within the past six months while black-clad protesters have vandalised transport facilities and pro-China stores.
Hong Kong has cancelled its traditional New Year’s Eve fireworks over safety issues, the latest popular occasion to be scrapped.
Fed up, some taxpayers are planning a transfer someplace.
“I have to think of a back-up plan,” said Cat Liu, a salesperson in her 40s who is contemplating purchasing an apartment at Taiwan or Malaysia, partly because of the present political situation. Both sides are standing company and there is no way to reach a compromise”
Though Asian destinations provide more affordable investment opportunities for the middle class in Hong Kong, the more affluent tend to decide on possessions from the West. Australia is also an attractive option.
“Buyer attention from Hong Kong has stepped up considerably compared to what we have observed in the past two years,” said CBRE Group Inc’s Australia residential manager, Colin Griffin. “Safety concerns for families as a result of current riots have been driving the increased interest, together with Australia seen as a safe haven.”
CBRE expects the luxury residential business will be encouraged by overseas investors, particularly those from Hong Kong and mainland China.
The possessions average A$20 million (US$13.8 million), together with some costing upwards of A$30 million.
“These buyers are taking a look at decoration houses and are prepared to pay a premium so as to secure top-end possessions,” Griffin said.
Generally through, many Hong Kongers are taking a look at the below A$two million price stage, he said. Around A$1 million will buy you a two-bedroom apartment that’s not too distant by a capital town’s centre. Inquiries are increasingly from individuals wanting to reside in the components, rather than rely on them as investment properties.
“Normally in Hong Kong we have folks talking about returns and what rentals can be achieved,” Griffin said. “Nowadays people are talking more about education, where their kids can stay, just how far properties are out of transport and travel times to the city. They are asking different questions to what they have done over the past couple of years.”
David Ho, a Vancouver-based senior vice president at CBRE, travels regularly to Asia, such as Hong Kong and Macau, to match buyers as well as potential investors.
“They are 35 to maybe 45, families. A great deal of folks are only hoping to learn about Canada and establish a conference call with immigration consultants, education consultants, mortgage brokers, accountants that provide them a broad perspective of what,” Ho said.
They are searching to get houses worth around C$1 million (US$760 million) and are”average Joes”, he said.
The larger amount of queries hasn’t always translated into more transactions, nonetheless.
“While questions have gone up, the amount of transactions and the amount of people taking money abroad are at similar degree” for this period last year, said Mark Elliott, Hong Kong-based head of international residential for Savills Plc..