Hong Kong, Singapore Property Will Part Ways
Real estate investing in Asia’s rival financial hubs won’t look the same after Covid-19 and China’s national security law.
A bubble that can’t afford to be pricked.
Photographer: Billy H.C. Kwok/BloombergA small number of world cities command a big slice of the global property investment pie. That’s both a boon for governments seeking fiscal nirvana in real-estate taxes and stamp duties, and a bane for residents who must battle yield-seeking global capital just to afford their residential and business addresses.
In Asia, Hong Kong’s real estate investment market is as large as its gross domestic product; Singapore’s half. In most other places, property as a professionally managed asset class is a much smaller ratio of output. No wonder that the two island economies will be in the crosshairs of global capital again, now that the U.S. Federal Reserve is signalling a higher tolerance for inflation before withdrawing monetary stimulus.