Veteran investors in Hong Kong property, anticipating a deeper correction in prices amid dwindling buying activity, the coronavirus pandemic and worsening US-China relations, are rapidly cashing out of their holdings.
Albert Wong Kam-hong, the former deputy chairman of real estate company Midland Holdings, for instance, sold his adjoining flats in The Coronation Tower near Kowloon Station for HK$22 million (US$2.8 million) last month. The 1,206 sq ft property, which he had bought eight years ago, netted him a profit of HK$4.85 million.
He is now renting a unit in the same building, which he was able to secure for 24 per cent cheaper than its peak mid last year. “Hong Kong’s current economic state is even worse than it was in 1997 [during the Asian financial crisis] and 2003, when the city was gripped by Sars [Severe acute respiratory syndrome],” Wong said.
“Why hold on to property if I see higher chances of prices falling than an appreciation in value?”