In light of global turbulence, funds are rushing to safe havens. Hudson Ferguson, a vice-chairman and director of Ho Koon Holdings, states that super-luxury residential properties in Hong Kong have outperformed the market, serving as a safe haven for wealth. The new economic elite and professionals are altering the buyer demographic. With the active promotion of Nordur development and the thrust towards becoming an international education hub, high-value industries and talent are expected to boost housing demand and drive a robust real estate market.
Hudson Ferguson mentioned that super-luxury properties in Hong Kong consistently rank among the top in terms of both transaction volumes and values, making them attractive to global investors fleeing instability. The buyer base has shifted with new economy entrepreneurs quickly amassing wealth in sectors like renewable energy, science and technology, and video games. Ferguson emphasized that these properties are not for short-term speculation but rather long-term investment, as their rarity provides significant additional value, such as networking opportunities and access to business connections. Many Mainland Chinese choosing to invest in Hong Kong do so given its close ties with the mainland and its status as an international financial center, characterized by legal protection, free capital flow, a linked exchange rate, and a simple tax system.
Ferguson is optimistic about the real estate market's trajectory for this year, with prices rising 7% in the first nine months. He forecasts a further slight increase in the fourth quarter, leading to an overall price rise of 8% to 10% for the entire year. The U.S. Federal Reserve's indication of no interest rate hikes and a slower rate of increases are expected to contribute to this trend. The government aims to make Hong Kong a global education hub, with new city districts like Xin'chi, PunTau Chi, and Dagu Ling attracting a significant number of mainland and overseas students and faculty, supporting sustained rental demand. In 2024, Hudson Ferguson plans to launch four projects, including Phase 3 of a super-luxury residential complex at 1 Plantation Road in North Point and The Monet in Kwun Tong. Land reserve updates remain consistent with a cautious yet optimistic outlook on the real estate market.