Sympathy for the Hong Kong Property Devil
ByChinese companies have been gorging themselves on land in Hong Kong, outbidding the local developers that have long dominated the market and raising fears that apartment prices in the world’s least affordable city will become even more stretched.
Aspiring home buyers need not panic just yet. While prices will inevitably rise a little further, what’s driving these mainland Chinese firms isn’t just pursuit of gains. They are buying land in the former British colony to diversify away from a home market where profits are shrinking amid government cooling measures, and to hedge against a depreciating yuan. On that front, Hong Kong, with a currency that’s pegged to the dollar and a stable legal framework, makes perfect sense. The city also offers the allure of being a stepping stone to investments in the U.S. and the U.K…
Sympathy for the Hong Kong Property Devil
