The ridiculous land price in HK
Hong Kong is an amazing place. Due to its unique history and location, Hong Kong became an international city. Most of the rich companies in Hong Kong rely on the estate’s business. The fact is that Hong Kong is just a small place, land supply is extremely limited. But the population never stops growing. In this situation, businessmen keep rising the land price or the rent. As government needs more income to enrich the reserve and keeps providing land piece to the market, Land sales must continue.
In general, Hong Kong citizens need to face many housing problems, most reasons related to unaffordable high rent or price of the apartment.
Recently, many small retail shops are being exploited from huge financial group. Those retail shops are in DNA shopping mall. This issue is about a huge financial group rent its own bunks in an elated rent and the shopping mall is being sold but the conglomerate did not noticed those retail shops’ owner and still charge them the monthly rent. The focus is on the ridiculous rent. Those shops maybe only have 50-75 square feet but the rent is almost cost $8000 which is a relatively expensive rent among Hong Kong or near district. Sadly, the conglomerate do not satisfied. And it chooses to sell the block and earn one big money. This is the main reason of why Hong Kong land price never fall. It is because the greedy financial groups always exploit local small business men.
The issues mentioned before is about the office rents. Though office rents came down substantially from their peak, retail rents were much more resistant to downward pressure, as big landlords obstinately refused to give in to retailers’ demand for rent reduction, even after the onslaught of the deadly disease SARS. At the end of 2002, retail space in Causeway Bay was ranked the world’s third most expensive in terms of rent, according to Laing and Simmons’ annual Main Streets across the World Study. After 2000,...
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