The apartment, in a development called High Place, isn’t much bigger than the standard U.S. parking space. It went into contract in May for almost four million Hong Kong dollars (US$516,000.)
Even by Hong Kong’s cramped standards, apartments here are getting tinier and tinier.
So small are some of the new developments in Hong Kong that they have been given the moniker “mosquito-sized units.”
The incredible shrinking apartments in Hong Kong is part of a broader trend of rising values of residential real estate in major cities around the world, as investors see property as a better investment than low-yielding bonds.
Hong Kong, much like London and New York, also is seeing strong demand from wealthy investors from other countries looking for safe places to park their money, with much of that investment coming from mainland Chinese buyers. While these investors go after higher-end Hong Kong property, they are helping boost prices in general, making it tougher for people simply looking for a place to live.
Hong Kong property prices have continued to rise despite repeated attempts by the government to keep them in check. The average price of private residential property, according to government data, has been on an upward trend since 2009, save for dips during three quarters in 2011 and a very mild correction during 2013 after the government stepped up measures to cool property prices.
Read more: http://www.wsj.com/articles/in-hong-kong-the-apartments-are-fit-for-a-mosquito-1433237582
Related article: What will Hong Kong Property Prices do in 2015?
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