Rich mainlanders abandoning HK for overseas property markets

Sky high property prices ignite flight.

Mainland Chinese accounted for 18% of new luxury home sales in Hong Kong in Q1, the lowest level in four years. This was 43% lower than the third quarter of 2012, before cooling measures were announced, said real estate company, Centaline Property Agency.

Hong Kong has imposed a series of measures since October to cool down its overheated property market, including a 15% tax on foreigners targeted at mainland buyers.

"Mainland Chinese have lost the ticket to buy properties in Hong Kong, now that tightening measures are in force," said David Hui, Centaline Overseas Sales Director. "If they want to invest in property, they now need to go overseas."

The flight abroad is taking mainlanders to the United Kingdom and the United States where Chinese rank alongside Canadians as the fastest-growing group of buyers.

In London, overseas buyers accounted for US$3.8 billion worth of new-build property in 2012, up from US$2.8 billion in 2011, said estate agent Knight Frank. Buyers from greater China are among the top three.