smh article: the worlds most expensive property market is crashing (Hong Kong)

https://www.google.com.au/amp/s/amp...perty-market-is-crashing-20190227-p510gh.html

Any Chinese investors here can comment on this?

I know the media likes hyperbole but they don’t usually outright declare something to be happening unless it’s verified. Scary headline.

 

The thing that worry me a bit is that all markets are down quite a bit at the same time and for basically the same reason : credit restriction worldwide (Hk, Thailand, oz, US).At least China was pushing up during the GFC aftermath

 

It needs to crash as its too darned expensive.

 

Just like the gfc. Big daddy USA pops causing all the little bubbles to pop (Ireland, Spain, Iceland, Dubai). Now we’ve got big daddy China popping potentially popping Canada, Aus, NZ. Can’t imagine it playing out the same way because markets would have already been prepared for it but who knows. Also China communist different than the USA. Maybe China gov let their citizens get dragged down to hell to keep a bubble inflated.

 

I think like any markets, if you buy cookie cutters, then the fall affects you more. Imagine since 2003, a flat has appreciated 4 or more times conservatively. Dropping back a bit is only normal. Of course if one bought shoeboxes, some as small as 15 sqm in size, brand new, then it would be ominous. Hey, do you know the richest persons in HK all made their fortunes from real estate, and they are not exiting in a hurry. Good quality property, good locations, in high demand areas will stay put. Same everywhere, including Sydney and Melbourne.

 

Exactly. I recently got an offer to relocate there but even with a pay rise to pay AUD$1.5 million for a 50 square metre 2-bedder 1 hour+ from CBD is just madness. Plus one has to put down 40% deposit which is what most people without rich parents struggle to achieve.

 

PBoC gave up on their 2018 deleveraging agenda because everything was falling too fast when they turned the credit taps off. By late 2018 they were flooding the financial markets with liquidity again. China isn’t doing anything special to sustain their bubble, just regular old QE like every central bank did to recover from the GFC.

Google “PBoC stimulus” and see for yourself.