Greed?
Indicators of an over priced market (aka a Bubble):
1. Rental Returns are abysmal and do not justify prices.
2. Huge speculative investment with 'funny money' going on.
3. Over supply of mortgage liquidity.
4. Falsely low interest rates (driven by US economy, rather than HK economy).
5. Massive over-supply (up to 30% of HK units reputedly lie empty).
6. Market manipulation by Developers and their lacky Politicos.
7. Growing majority of locals priced out of the market.
Contrary to what some previous posters have said, Property is a great way to make a fast buck.
If you time it right.
Time it wrong - even just a few weeks or months wrong, and you have a rapidly depreciating and illiquid investment which will break your back.
Greed ensures most investors time it wrong.
There is no such thing as a 'soft landing'.
When Bubble property markets burst they go off a cliff, overnight.
The biggest Property Market Cliché? "It won't happen here".
Property prices in some Western countries have fallen by over 60% in the last 4 years - and are still falling. They used to say "It won't happen here. Boom and Bust is history.' Ho Hum.
Buyer Beware.
Official Disclaimer: I own 4 properties, but in diverse countries, ALL mortgage free and in positive equity. I own NOTHING in Hong Kong.
Not interested, thanks.
Last edited by Algol; 30th July 2012 at 16:51.