DON’T SPEAK THE TRUTH IN HONG KONG    

 Marching towards two opposite Directions.

By: Dr.Asmat Hayat ALVI.

If you see a person is marching towards two opposite directions at a same time; you will surely consider that’s a stupid or crazy; as making no advance but wasting time and energy. Hong Kong administration is doing same act as she deals with property market. On one hand HK administration is inviting foreign citizens to come HK, invest here, buy property and make HK their second home; on other hand HK administration is trying to push-down prices of Residential Flats, irrespective of demand and location.

Hong Kong is a part of China. China is the fastest growing economy of the world. Each year many mainlanders are becoming multi billionaires. Most mainlanders are interested to buy property in HK in a desire to make HK their second home; as HK is nearer and more convenient than other developed cities of region. Second not too much documentation is needed to travel to and from HK, for most of mainlanders.

HK has a number of competitive advantages that keep HK ahead of other Chinese cities; such as Political & Press Freedom, legal system, Banking System favoring riches, international networks, free flow of Financial Information, international Talents and plans of China; to make HK the first offshore Renminbi (Chinese Currency) centre. Keeping all these factors many mainlanders are thinking to open their second branches of offices in HK; after Shanghai.

In HK many locations previously not attractive for riches have become attractive for them now, after adding numbers in riches in the territory. 

It’s a fact; demand for Luxury flats in HK is rising day by day. It’s hoped that demand for luxury flats will grow in coming ten years and will sustain in next twenty years with the growth of Chinese Economy.

It’s a fact; price of land, for luxury flats and resort type residential flats attract three to four times revenue. Figures speak itself; people and administration can see clearly as all land sold by government this year is hammered on unexpected high prices ever before. One shouldn’t be surprised because there is huge imbalance in demand and supply of land in the territory. 

It’s a stupid idea and economic blunder; if administration of HK builds low priced small cage like flats on those plots which can bring huge sums of money. Low income classes of HK need better and bigger housing area does not matter for them if well connected. High Income Classes demand attractive and good looking views in and around their housing.

In my opinion administration of HK can earn trillions of dollars after selling land; at good and attractive locations to property developers and can use this huge money to construct small & medium sized flats for low income people elsewhere.

I think administration of HK should re-furbish and re-construct her policy of Housing for greater benefits of all classes of HK.

My advice is simple, straight and short, “Don’t march in two opposite directions, its waste of time, money and energy. March in one direction only, achieve positive goals; be happy and make happy all.

Sep,07,2010.