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Hong Kong real estate is considered one of the priciest real estate in the world. The same has affected the overall business competitiveness. No doubt Hong Kong real estate is expensive, yet the real question is whether the price level has gone beyond all “explainable” parameters. According to a media survey report in 2004 the price of real estate in Hong Kong, billed as one of the costliest in the world, and has gone up steeply. |
According to International Herald Tribune Properties, ‘Hong Kong has one of the world's most feverish property markets, with developers jockeying to claim record prices. The most recent was 31,384 Hong Kong dollars, or about $4,000, per square foot, or about $370 per square meter. Even a small apartment in a pedestrian, multi-tower development costs about 2.5 million Hong Kong dollars’. However this doesnot mean that property market is completely dormant in Hong Kong it has its own benefits to offer, including the immensely growing economy and the preferential tourism industry of the island.
Buying a property in Hong Kong has the advantage of having a well-established market, high levels of service from international estate agents through to lawyers, and great resources at hand to research exactly what you are after. There are no restrictions on international investors buying property in Hong Kong. The first step to be taken while buying property in Hong Kong is to get the agent to negotiate the sale of the property and then a lawyer is to be appointed to act for the investor in the purchase.
When an appropriate property is found, an Agreement for Sale and Purchase will be concluded between the owner of the property and the investor - this will usually be within 14 days from the date of a provisional agreement.
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Hong Kong real estate market is similar to the UK with the structure of ownership working along familiar lines. Property can either be wholly owned by one person or jointly by several investors. Joint ownership can be in the form of tenants in common or a joint tenancy. |
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Most properties on the island are subject to existing mortgages, and since the fall in the late 1990s the present value of the property may be even lower than the outstanding indebtedness owed to mortgage banks. It is important to find out whether the balance of the purchase price is sufficient to pay off the outstanding debts owed by the property owner to the mortgage bank.
The age of the property must also be considered when buying in Hong Kong, There are some cultural differences focusing on the marketability of new properties versus older-style properties.
Source:
www.investmentinternational.com
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