http://money.cnn.com/2013/03/07/news/economy/hong-kong-property/index.html?iid=SF_E_River
It's interesting to learn about the one of the oddest trends in the real estate market in Hong Kong. People there are paying hundreds of thousands dollars for a parking space or a roof. As weird as it sounds, almost every piece of privately-owned concrete is up for grabs in Hong Kong as the city's overheated property market continues to swell, driven by low interest rates, limited supply and waves of cash from mainland China. This somewhat bizarre trend was apparently started when the government tried to cool the market in October which may also have unnerved some investors and lead them into less regulated alternative property investments like parking spaces and roof decks. If you have been to Hong Kong, you know that it is an extremely dense region. There is very little buildable land and because of that, new construction is carefully controlled. The population is growing rapidly, people are well educated and they have a lot of disposable income. These are the perfect ingredients for a "frothy" real estate market.
2 comments:
I could be completely confused, but aren't practices like this occurring in densely populated areas of the United States as well? It might be that the situation Hong Kong is a harbinger of what's to come for us in the future.
I suppose that if you want to own property and build-able land is unattainable, these are logical purchases. I actually don't see why this is so weird. The only issue here is inflated prices, but if the demand is that high and supply that low, it makes sense.
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