Real estate agents in Hongkong are calling on buyers to go for cheaper homes as prices in the territory are skyrocketing, even as their agency’s realtor says that would be a bad idea.
In recent weeks, the number of listings at sothe by sotheBYTES has been increasing, as the real estate market has become more expensive, and the country’s realtors’ association has warned that Hong Kong’s price of HK$2.1 million is too high for many buyers.
“If a buyer wants a HK$1 million house, I think that’s the best price they can get,” says Yoo Ching-yee, director of the Hong Kong Real Estate Agency.
He says that a buyer who can afford to pay HK$300,000 or HK$400,000 will be able to buy a house in the city’s priciest areas.
“I think it will be better for buyers to think about the cheapest place in Hong Kong, and look for properties in less expensive areas,” he says.
“I do think it is possible to find cheaper places in the cheaper areas, but I think you will find it harder.”
In some cases, the average price of a home in Hong kong is over HK$5 million.
Realtors say the increase in prices is the result of a surge in demand from foreign investors.
But that hasn’t always been the case, and many Hongkongs residents who buy their homes in the region say they are concerned that their local agents are overcharging them.
In the past, many Hong Kong buyers were able to negotiate a low mortgage payment, but many now are having to pay much more than they would pay elsewhere in the country.
The real estate agent says Hong Kong prices are already out of control.
For example, he says he often sees buyers who are paying HK$800,000 a year to buy their own home in the more expensive parts of the city, but are now paying more than HK$500,000 for a property in less desirable areas.
Yoo says it’s possible for buyers in Hong-Kong to have their homes sold at less than HK100,000, but it will take longer.
If a seller is looking to buy, Yoo says they should first look for a place with the lowest mortgage rate in the area.
And if a buyer has more than one home, he recommends finding out where they live and making a phone call.
“Make sure that you contact the buyer first to make sure they want to live here,” he said.
This is the second time that Yoo has spoken about how the Hongkow prices in HongKong are too high.
After he was forced to stop listing a Hongkou home in October because of high prices, he said the HongKou prices were also too high, but he also said he would continue to do business with HongKongs realtourists and brokers.
I hope people can see that, he added.
When the Real Estate Association of Hong Kong (REAK) said in June that Hongkook home prices had doubled since 2013, Yee said the increase was because the Hong-kong realtours were not charging enough.
Since then, prices have doubled again, with some homes sold in the previous year selling for HK$3.2 million or more.
A number of other realtor companies have also increased prices recently, and some are also facing pressure to raise prices.
Many of these companies are competing for customers with a wide range of local realtorship agencies.
There is also a rising number of overseas buyers coming to Hong Kong looking to move to the region.