Hong Kong is ranked as the 4th most densely populated country in the world with a population of over 7.3 million people living on 2, 755 square kilometres of land. There are an estimated 6, 683 people per square kilometre. Consequently, with so many people on a relatively small and rocky country, the Hong Kong property market has been facing a housing crisis.
Hong Kong real estate prices have continuously climbed every year. Eventually, it earned the title of being the world’s most expensive housing market. The government has been relentlessly trying to resolve the housing issue through implementing development regulations and low interest rates. However, one seemingly unsolvable issue is the dwindling supply of land which is why Hong Kong homes keep getting smaller and pricier.
Apart from the difficulty of finding a decent-sized home and paying the hefty property prices, those looking to buy Hong Kong property are also faced with sky high maintenance fees. Several residential projects have suddenly announced an increase in their maintenance fees. Peninsula East, a Hong Kong condo development in Yau Tong, reportedly raised the fee by 17 percent right before the unit hand overs, startling its investors.
“As operation costs have risen due to higher inflation and staff costs are also higher, we believe HK$4.10 per sq ft is reasonable.” Ricky Wong Kwong-yiu, managing director of Wheelock properties, said in defense of their sudden maintenance fee increase. On the other hand, the One Prestige development, with an average unit size of 163 square feet, has a whooping maintenance fee of HK $ 5.50 per square feet. Higher prices are making it difficult to get a Hong Kong property investment.
Numbeo estimates that the average monthly rent for a nano 85 square metre apartment (including utilities) amounts to HK $ 1, 297. Prices of bigger apartments are costlier. If you add to that the sky high maintenance fees developers are making its residents pay, Hong Kong is evidently becoming an irrationally expensive place to live. Still, the government has high hopes for the country and continues to persevere in making living in Hong Kong easier.
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