Part 8/9:
Amid this turmoil, the property demand in Hong Kong is waning. The city is facing economic headwinds, exacerbated by its dependency on Chinese economic growth, which has begun to stagnate. Furthermore, the real estate market is seeing former high-value properties sell at substantial discounts, highlighting a shifting landscape. Examples include a recent $77 million mansion selling at a staggering 60% discount.
Land auctions, once robust with bidding wars, have seen minimal interest, with many cancelled due to lack of bids exceeding the minimum. With the city now running a significant budget deficit, it faces a crucial turning point: either continuing to deliver top-tier public services or raising tax rates to sustain its economic model.