Despite high prices in the Hong Kong property market, a shortage of new homes could continue to push prices higher, according to the Royal Institution of Chartered Surveyors (RICS).
Although Hong Kong property prices are unaffordable for many locals, the supply-demand imbalance could continue to place upward pressure on values, offering lots of fresh property investment opportunities for British investors.
According to a RICS report, it is estimated that around 22,000 new homes are required each year, yet current policy only allows for 18,500 new residential properties annually.
David Tse, RICS International Governing Councillor and Chairman of RICS Hong Kong Housing Task Force, said: "At present, there appears to be a mismatch between the supply of small sized flats, Class A flats, and the needs of the average households, but in recent years, we noticed that the unit price per square feet price of large sized flats, Class C, D and E flats, of three or four bedrooms were rising much faster than those small sized flats with one or two bedrooms.
"RICS is calling on the government to conduct regular surveys on the future aspirations of the average households on types and sizes of flats before laying down appropriate housing and land supply policies to meet the functional and future needs of Hong Kong households."