Money losing property selling by rich families in Hong Kong

Money losing property selling by rich families in Hong Kong

Would I sell my property at a lower price than my buying price?

I do not believe any home owner would sell the property lower than the price they bought UNLESS it’s due to some special circumstances. For example, maybe they are leaving the country, maybe they need the money to pay debts, maybe they need the money for sudden emergency but no one will be willing to sell at a lower price than their purchase price. Chinese would say, ‘lose face leh, if sell lower than the price I bought.”

Article in nst.com.my. Rich families in Hong Kong are selling their villas, mansions and other properties, accepting losses of millions of dollars, to pay debt as the local property market struggles.

Around 75% of high-end property transactions in the first half of the year involved financially stressed sellers, according to data from property consultancy firm CBRE Group. A high-end unit is priced starting from $10 million.

“There have been quite big changes because for the past 15 years, family owners didn’t bother to sell,” said Reeves Yan, head of capital markets at CBRE Hong Kong, as cited by Bloomberg.

Hong Kong’s property market is in a slump, and developers have to cut prices by up to 30% to pump up sales as investors and buyers are reluctant to put down payment amid high interest rates. More details in the article here: Article in nst.com.my.

Hong Kong is still a vibrant financial hub yeah

In case anyone thinks Hong Kong is no longer a financial hub, it’s not true yeah.

Still 4th in the world as a financial centre yeah.

We should refrain from over-stretching financially

No one knows when the market could suddenly slow down or even suffer a potential collapse. For example, due to effects from Covid. Thus, being prudent may enable us to continue investing and at the same time is able to hold on and wait for better times when needed. Property price, except if it was too overpriced would eventually recover.

I have no prediction for Hong Kong but I do hope that it will become a magnet for companies again in the future. At the same time, can also attract more tourists since hotel prices are slightly more affordable these days. Yes, I hope to visit Hong Kong again maybe next year. I have visited Hong Kong in 2023 and also in 2022 as well. Eating is still good even if i would prefer for it to be cheaper lah.

Please share with people you care.

Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). 

Alternatively, Follow me on Telegram here.

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.