One of the world’s priciest housing markets has seen an unexpected slump, according to first quarter economic reports. Hong Kong is suffering from dwindling retail sales and facing its weakest property market in 25 years.
Another of Asia’s financial-hub, Singapore, is suffering from similar problems, despite seeing a slight economic expansion in the first quarter, according to Bloomberg.
Both countries are being effected by China’s economic slowdown.
“As financial centers, both cities cannot escape the geopolitical and economic forces coming out from China,” said Andrew Sheng, a distinguished fellow at the Asia Global Institute in Hong Kong, who previously worked at the Hong Kong Monetary Authority and Malaysia’s central bank. “So the slowdown will affect them both.”
Still, the slowdown hasn’t kept the super-wealthy from splashing out on Hong Kong’s super-expensive residential real estate. For instance, billionaire Chen Hongtian recently spent $270 million on a house on the Peak – the highest point on Hong Kong Island. [Bloomberg] –Christopher Cameron