Hong Kong, London Vie to Have the World's Most Expensive Real Estate

It’s hard to imagine why some apartments in Hong Kong are selling for $9,677 per sq. ft.

As published in time.com, two luxury Hong Kong apartments have just gone on the market for a stunning $38.7 million each. It comes with “sweeping views of Hong Kong's harbor perched atop the 93-storey Cullinan towers”.

In the past few years, the City of Pearls rivaled New York, London and Tokyo as to having the most expensive residential properties in the world.

Real estate all over the world tasted bitterness during the economic turmoil because home buyers want small yet practical houses. High-end luxury homes continue to stay stuck in the market and home prices continue to drop even lower. Prices for luxury houses in London are still lower compared to 2008. And because of that, Germany’s Munich is now the most attractive European city for real estate investment judging by the level of demand.

According to LaSalle Investment Management a leading global property fund manager, London has been knocked from the top of a list of best European cities for commercial property occupiers and investors for the first time since 2005. This downfall reflects London’s exposure to the financial downturn compared with other rival business hubs. However, London remains a very attractive place for property investment.

In LaSalle’s midyear update on the European commercial real estate market reveals that investor sentiment has stabilized and that re-pricing has found a floor.  There is also evidence, according to LaSalle, that there is increasing competition, particularly from foreign buyers attracted by the weakness in Sterling and the benefits of the UK lease, so investors need to move quickly to avoid missing the upturn.

Back here in the U.S., many became optimistic with the improvement in housing this summer. But there are still reasons to remain worried about housing (from forbes.com):

• Tightening mortgage standards
• End of Federal Reserve support
• Expiration of Housing Tax credit this December 1

In Asia, China's property sector is booming, growing about 35 per cent in August from about 20 per cent in July. Especially in Hong Kong and Singapore wherein property markets have rebounded strongly in recent months. Many observers say that Asia's property sector is likely to grow 2 to 3 times faster than in the US. On the other hand, economists think that seeds are being sown for Asia's next bubble.

So if you are interested in any of the apartments with the view of the Victoria Harbor, you might want to wait a bit until prices get a little lower. But that is not likely to happen because home prices in Hong Kong have always been high. However, if your forex trading business is doing great…it might just be worth it.

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