After Lehman, Hong Kong bounces back quickly
The world’s fifth-most expensive residential real estate market, Hong Kong, is known for recovering fast, according to Bloomberg news.
After Hong Kong property prices plunged 20 percent last year due to the collapse of Lehman Brothers Holdings Inc., Mainland Chinese buyers and record mortgage rates lower than London and New York enabled the market to bounce back.
Now home prices are now up 26 percent this year. Recovery was quick because banks cut mortgage rates to the lowest in 19 years, with some offering loans with a 1 percent interest rate. The increasing number of customers helped boost property prices.
Luxury homes worth 10 million rose about 30 percent due to a buoyant economy and a shortage of new supply, and may rise another 10 percent because of low interest rates and improving stock markets.
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—Kimberly Turner
