In Hong Kong, a $56.6 Million Apartment

After discussing different economic systems throughout the world, this article highlights the different models in China. Hong Kong has recently just sold an apartment for $56.6 million dollars in contrast to warnings that the city might be facing real estate bubble. Hong Kong pegs its currency to the ours as well as interest rates. The governments owns all of the land and can lease it to developers for up to 99 years. They set strict rules on how the building can be used and other zoning regulations. Regulations have caused an increase amount in vacant spaces because people are not able to keep up with payments to the government and adhere by the specific rules. The article also touches upon fact that if our interest rates rise, "real estate owners in Hong Kong could be severely squeezed". What will the future hold for this market in Hong Kong? Does this $56.6 million dollar sale mean there will be no real estate bubble? Most likely, no. Deals like this are probably not going to happen in the future.