Foreign media: The Chinese luxury property market is booming, attracting an increasing number of affluent individuals to keep their wealth within the country, which could create new pressure on Hong Kong's high-end residential market.
Analysts point out that China's intensified efforts to crack down on illicit capital outflows—particularly restricting asset transfers through Hong Kong's "gray market"—have made luxury properties in cities like Shanghai increasingly attractive as a tool for preserving wealth.
Although the overall real estate market in China remains sluggish, prices of new luxury homes in Shanghai have risen by approximately 31% during the same period, while transaction volumes have increased by over 50%. Although recent buying frenzies have cooled slightly, with limited supply and stable demand, luxury properties are expected to continue outperforming the general residential market.
Wealthy households are less affected by economic slowdowns; they rely more on investment income, carry lower debt levels, and benefit from rising stock markets. Additionally, years of restrictions on large-scale luxury home construction have led to limited inventory in the luxury housing market, further supporting price stability and growth.
Original article: toutiao.com/article/1870859333997632/
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