Empty apartments and plummeting rents in the world’s most expensive housing market: How the exodus out of Hong Kong could change its real-estate scene in 2021

hong kong China’s new national insurance principle triggered an exodus from Hong Kong.

Hong Kong residents are absconding to the United Kingdom after China’s crackdown on the city. The exodus could stimulate Hong Kong’s notoriously high-pitched rents to fall 10% in 2021, per a new report. The city had been able to have the highest number of vacant dwellings that it’s considered to be in 18 years. See more storeys on Insider’s business sheet.

For years, Hong kong residents has been notorious for its astronomical real-estate prices. In 2020, it was reputation the world’s priciest residence market for the 10 th year in a row.

But 2021 could be a year of major modify for the city’s real-estate market. Hong kong residents tenants have been flocking to the United kingdom government since China guided a controversial brand-new national defence law last-place summertime. In January, a new UK visa scheme met it even easier for Hong Kongers to move there. The British government said here today expects more than 300,000 Hong Kongers to move to the UK in the next five years under the brand-new scheme.

In their aftermath, Hong Kong’s infamously high rents could droop 10% and vacancy rates could smack an 18 -year high-pitched, returning a major shake-up to Hong Kong’s real-estate market, according to the South China Morning Post, who quoted a brand-new report from Bloomberg Intelligence.

An exodus from one of the world’s priciest cities

Hong Kong’s high cost of living and residence inequality are well documented. While the rich descend hundreds of millions on mansions and build “Versailles-like” villas, numerous tenants is impossible to afford to live in tiny “coffin homes.”

Even the COVID-1 9 pandemic and months of social turmoil didn’t conclude have too much of an impact on Hong Kong’s prices in 2020. Rents abode high last year and home premiums put only 4 % between May 2019 and October 2020, according to Reuters.

'Vibrant Hong Kong' by @leemumford8 (UK) Hong Kong has long been the world’s priciest metropoli for housing, but things could change in 2021.

But 2021 could be a different story. After China surpassed their own nationals protection ordinance last year that menaced life imprisonment for pro-democracy opponents, the UK accompanied record number of Hong Kongers applying for British National( Overseas) passports, known as BN( O) s, which allow them to live in the UK but don’t automatically grant them the right to work.

The British government said it issued about 200,000 such passports to Hong Kongers in the first 10 months of the year at a rate of about five passports every minute.

In January, the UK started it it even easier for Hong Kongers to live and work there, launching a brand-new visa intrigue for BN( O) owners to live and work in Britain and apply for citizenship after six years, according to a government statement. They can apply for the visas online from their residences in Hong Kong.

In total, approximately three million Hong kong residents residents are eligible to apply for BN( Os) and move to the UK, according to a British government study.

China denounced the UK government’s recent move and said it would no longer recognize BN( O) s as valid travel documents.

london rutland gate mansion Wealthy Hong Kongers are clicking up indulgence real estate properties in London.

An out-migration boom

The influx of Hong Kongers to the UK during the past year has was instrumental in a surge in demand for luxury real estate in London, regional workers told Insider’s Bill Bostock last summer.

In 2020, London homes that sell off 10 million pounds( about $14 million) or higher were “dominated” by buyers from Hong Kong and China, luxury real-estate agency Beauchamp Estates said in a January report provided to Insider.

Hong Kong, meanwhile, have had an opportunity to 66,683 homes sitting empty-bellied in 2021, up from 52,370 last year, according to the Bloomberg report.

“This is the biggest emigration boom in Hong Kong’s record, ” Andrew Lo, a Hong Hong emigration consultant, told Nikkei Asia last-place month. “People from different levels of the society, aged from 18 to 80, are all talking about emigration.”

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