Sep 15 2009
How About A US$ 3 Million One Bed-Room Apartment, Sir?
As the anniversary of the downfall of the Wall Street giants approaches, a Tsim Sha Tsui property is released for sale in Hong Kong. The smallest one bed-room units are selling at 24 million hong kong dollars (or US$ 3 million). Investors have lost the ability to remember anything that has happened more than a couple of months before. I am not here to cry “wolf”. Nonetheless, with unemployment staying high and CPI staying low, one couldn’t help but wonder whether the price tags on these properties are reflecting the purchasing power of the economy. Of course, we do have new mainland millionaires buying Hong Kong assets without thinking twice. The questions are “how many”, “for how much longer” and “when are they selling”. I do hope that the recovery of asset prices can be sustained, but am in no hurry to be in this crazy chase for the next get-rich-quick hoax.
