Foreign investment pushes HK housing market up further in 2017
Foreign investment has supported Hong Kong’s housing market run in 2017, despite a crackdown by mainland China to curb corporate sector debt. The Centa-City Leading Index for residential property is up 11% this year, following a 50% rise between 2011 and 2016. However, housing affordability deteriorated further in Q2, with a Chinese government report showing mortgage spending accounted for 67% of income compared to 56% in Q2 2016, and while house prices continued to rise, the rate slowed. The number of residential transactions dropped to half the 20-year average in July sitting at 3,515, according to official statistics.
GDP in the city was up 3.8 per cent in second quarter on back of strong stock and property markets and improved global environment