Overseas Property Survey: Hong Kong people love properties in England and Australia Willing to spend less than HK$2 million to purchase homes
Convoy International Property: US Dollar continues to be strong Hong Kong people are expected to purchase homes overseas easily
(20 April 2017, Hong Kong) Convoy International Property Consulting Company Limited (“Convoy International Property”) has conducted an online survey on Hong Kong people’s attitude towards investing in overseas property. The results show that the majority of people who intend to invest in overseas property agree that overseas property is an investment tool that offers stable returns with a potential in appreciation. Among all places, people choose properties in England and Australia as their first choice. The survey has also found that Hong Kong people have different doubts regarding purchasing homes overseas, including leasing management issues and lack of relevant knowledge. Neo Cheung, CEO of Convoy International Property, said, “US Dollar continues to be strong, which increases Hong Kong people’s overseas purchasing power. Coupled with the high price of property in Hong Kong, overseas property will become a new trend in investment, especially to attract people who have no property but are keen to purchase homes.”
This survey was conducted by Convoy International Property from 18 February 2017 to 14 March 2017 and successfully asked 1,029 people through an online questionnaire to investigate the views and attitudes of Hong Kong people on overseas property investment.
Properties in England and Australia are the most popular The budget for purchasing homes is less than HK$2 million
According to the survey, properties of respondents who now have overseas properties are mainly located in China (55%), followed by England (14%). Of these, 70% of the respondents have invested an average of above HK$1 million in overseas properties. However, for those who are interested in investing in overseas properties, England, Australia and Japan are their first choice because they believe that the property prices in China are rising and the property prices in several cities are comparable to Hong Kong. Hence, properties in China are not as appealing as before. Additionally, the exchange rate has become one of the important factors in promoting buyers to invest in properties in other countries. Looking at the three popular countries, their exchange rates in the past had been drastically adjusted downwards, which is the main reason that attracts Hong Kong people to enter the market.
The survey results also show that nearly 20% of the respondents are interested in investing in overseas properties in the next 12 months. The biggest reason for investing in overseas properties is that people believe there is a potential in appreciation of the property value, followed by the pursuit of a steady return on investment. Another factor that can attract Hong Kong people to invest is if the rental return of overseas realty is guaranteed and that leasing management services can be provided. However, around 70% of the respondents indicate that their budget for investment is below HK$2 million. Those who plan to invest for more than HK$2 million only accounts for 30%.
Lack of relevant knowledge is the main factor that deters people from investing in overseas properties
The survey also asked respondents who had never invested in overseas properties. 58.1% of the respondents say that the lack of relevant knowledge, which includes the sale and lease of local properties and related laws, mortgage details, and property market trends, is the main factor that deters them from investing in overseas properties, followed by the lack of funding (56.1%).
Investment Advice: Make good use of overseas property as an investment tool
Neo Cheung suggested that for people who do not own properties in Hong Kong, they can consider purchasing homes overseas first in order to gain a better return to help them purchase homes in Hong Kong. “Currently, Liverpool, Manchester, Bangkok and Osaka have many properties that are priced below HK$1 million, providing more choices for people who have limited funds yet are interested in investing in overseas properties.” Neo Cheung said. According to the company’s current customer statistics, properties in Japan and England are the most popular, followed by Canada, Australia and Thailand. In addition, more than 60% of clients seek out for studio flats that are at a more affordable price, which is suitable for first time home buyers.
Daric Wu, Associate Director of Convoy Financial Services Limited, said, “Overseas properties can be seen as an alternative for long-term investment strategy that diversifies risks in a portfolio and increases return on investment. Against the backdrop of rising property price in Hong Kong, overseas property is undoubtedly a choice for investment.”
Photo Caption: Neo Cheung (left), CEO of Convoy International Property, announced the survey results on the attitude of Hong Kong people towards overseas property investment with Daric Wu (right), Associate Director of Convoy Financial Services.