Hong Kong millennials – born between 1981 and 1996 – bought about 250 units in four different projects between Friday and Sunday
Fear is increasing among the millennials of Hong Kong, given that the continued rise in house prices does not seem to stop, young people risk not being able to buy a house of their own. So, even this particular group of buyers, came with arrogance in the rush to the real estate market during the last weekend.
The young buyers have in fact bought around 250 units in four different projects between Friday and Sunday, with prices ranging from HK $ 19.975 to HK $ 28,235 (US $ 2,545 to $ 3,600) per square foot in the last three days.
This means that there is no sign of slowing down in the city where house prices have been on the rise for 24 consecutive months, according to the real estate company Colliers International Hong Kong.
According to Sammy Po Siu-Ming, managing director of the residential division of Midland Realty, Sun Hung Kai Properties, the second largest developer in Hong Kong by market capitalization, sold about 100 units in its Wings at Sea II project at Lohas Park on Sunday.
The CEO confirmed that about half of the buyers were millennial, adding that some of them will need parental help to cover the economic part of the acquisition.
Hong Kong, for years, is considered as the least sustainable real estate market in the world
Despite a series of cooling measures by the government, Hong Kong was judged, for the eighth consecutive year, the world’s least affordable real estate market by Demographia, the US planning consultancy firm.
According to Demographia, the average price of properties in Hong Kong is around a figure that corresponds to 19.4 times the average annual household income. In London, for example, the share is 8.5 times, despite the British capital being seen as one of the most unsustainable cities in the world.
In the first quarter of 2017 the millennials were 32.3% of those who turned on a real estate mortgage
Despite such high prices, however, the city’s millennials – born between 1981 and 1996 – have invested heavily in the last period. Suffice it to say that, according to data from the Credit Bureau TransUnion, this group represented 32.3% of all new mortgages stipulated in the first quarter of 2017, against 19.1% in the same period of 2013.
MORE ON THIS TOPIC