Hong Kong property is all
leasehold and is in actual fact all land is owned by the Government of the Hong Kong
Special Administrative Region, original leases of all Hong Kong Land ranged from
50+50 years, 75+75 years, 99+99 years and some even 999 years which was mostly granted
for land on Hong Kong Island.
Before the handover of
Hong Kong to China in 1997, on the 27th of May 1985 the British and Chinese
government signed the Sino-British Joint Declaration which automatically renewed
all expiring Leases for a period of 50 years from 1997 until 2047 so in fact a
large majority of lease are due to expire in only 35 years time.
Regardless of this,
Hong Kong has function independent of this fact, from 1985 the Hong Kong
Property market has seen has large rises and falls including the 1997 Asian
Financial Crisis, 2003 SARS outbreak, and the 2008 Financial (Sub-prime
Mortgage) Crisis, these events made many millionaires and also caused the
largest amount of negative equity for individuals and families.Currently because of extremely low mortgage
rates the property market in Hong Kong is again at new levels even surpassing
the 1997 bubble levels, what holds for the future? No one is sure, there are
heated debates over an existence of a property bubble and with 2047 quickly
approaching the future is filled with uncertainties for the real estate market.
In these times of increased uncertainties it is imperative to be more
informative than ever, so for information on the Hong Kong Property market and
buying strategies just advice please don’t hesitate to contact us for advice.