Hong Kong billionaires rake it in, despite efforts to cool market

Nine out city's 10 richest are property tycoons

Mar.March 17, 2017 10:30 AM

Hong Kong (Credit: Exploringlife via Wikipedia)

From the New York website: Despite efforts to cool Hong Kong’s astronomical housing prices, the city’s real estate moguls are still raking it in. Property billionaires account for nine out of 10 of the city’s richest people, according to Bloomberg, and they haven’t missed a beat since November, when the city imposed higher taxes in an effort to tame the market.

The city’s property billionaires saw their collective fortunes soar 19 percent over the last four years, Bloomberg found. And the Hang Hang Seng Properties Index grew at 10 times the pace of the broader index.

In November, city officials introduced a stamp duty hike in an attempt to curb Hong Kong’s high real estate prices. But while eight of the city’s 10 richest people lost more than $4.4 billion, initially, they have recouped those losses.

Over the past few years, Hong Kong real estate prices have soared, despite the efforts of the city’s current chief executive, Leung Chun-ying. In the current election year, the two leading candidates have both cited unaffordable housing as an issue they want to address.

Since November, developers haven’t missed a beat at new apartment buildings — where crowds have been lining up to cash in on discounts and rebates.

“The rich are inconvenienced by it, but it’s the middle class that are hurt the most,” Peter Churchouse, the managing director of Portwood Capital, told Bloomberg. “It makes selling in the secondary market extremely difficult because buyers have to pay the tax up front, whereas the payments are deferred in the pre-sales market.”  [Bloomberg]E.B. Solomont

Related Articles

Best of TRD 2019 promo

Coming soon: The Real Deal’s Best of 2019

Madison Realty Capital'a Josh Zegen and Fort Partners' Nadim Ashi  

Four Seasons in Fort Lauderdale scores $210M loan

From left: Andrea and Renzo Rosso

Diesel family dishes on Wynwood condo project

Daily Digest Miami

South Florida home sales struggle in October, Cipriani and Terra plan luxury condo

Rendering of Sailboat Bend II

Affordable housing project in downtown Fort Lauderdale lands $27M loan

Rendering of the Brickell hotel development, Tony Cho and Robert Finvarb

Finvarb and Cho land construction loan for mixed-use hotel near Brickell City Centre

Construction of downtown Hollywood high-rise may start soon

Construction of downtown Hollywood high-rise may start soon

Jeffrey Epstein (Credit: Daily Beast | Getty)

Jeffrey Epstein commits suicide by hanging himself in his Manhattan jail cell