It is one of the typical images of Hong Kong's booming property market. Standing in an estate agent's office, a Mandarin-speaking buyer from mainland China haggles with a Cantonese-speaking Hong Kong realtor about a luxury apartment.
The buyer has been lured by a leaflet handed out on the street as Hong Kong residents watch but he's angry at how the influx of money from across the border is making it difficult for anyone from the former British colony to buy an apartment.
Demand from the mainland, combined with historically low mortgage rates and restricted supply, has pushed home prices in Hong Kong up 45 per cent since the end of 2008.
More than one third of the higher-end property in Hong Kong was bought by mainland Chinese buyers in the first half of this year. Last year they bought a fifth of the higher-end properties available, and 15 per cent in 2008.
With this in mind, Hong Kong last month suspended offering residency rights to investors who buy property in the city as part of the government's increasingly desperate efforts to curb soaring property prices that have unsettled many residents.
Locals can no longer afford to buy homes and there are fears that social stability could be undermined by the huge influx of mainland Chinese buying apartments.
"Stabilising property prices is our top priority. We will not allow a bubble to be formed," Donald Tsang, the chief executive of the Hong Kong special administrative region of the People's Republic of China, said as part of his annual policy address.
"Many find it unnerving that property prices have kept rising and years of hard-earned savings cannot even cover a down payment."
Many mainlanders took advantage of a 2003 programme called the capital investment entrant scheme, which allows foreign investors to obtain residency once they invest HK$6.5 million (Dh3m) in Hong Kong property, shares or other assets.
It is an attractive place to live with a solid legal and accounting system, low taxes, a decent education system and health care, and a lifestyle famous around the region.
So far, more than 8,000 people have signed up, 80 per cent of them from mainland China.
Tu Yijuan, the manager of Shenzhen Overseas Education and Immigration Consulting Services, a company organising immigration for mainlanders keen to settle in Hong Kong, says speculation about the rule changes had led to a flurry of applications.
"Right before this statement, there was a crazy number of applications from people in Shenzhen, as many in one day as in a whole month before, because people heard about something happening and they wanted to be one step ahead," Ms Tu told Sohu.com.
In one weekend in September, the number of used home sales in some of Hong Kong's biggest private housing estates jumped 90 per cent, despite the cooling measures, according to the city's biggest private property broker, Centaline.
But a closer look at the figures show immigration-linked purchases represent only 1 per cent of total property market turnover in Hong Kong. The government also emphasises the move is temporary as Hong Kong needs the mainland's input to thrive in the long term.
The territory's government has a major say in controlling the property market because it owns all of the land and decides when to release plots for auction. This year, there has also been a rise in stamp duty, an increase in the down-payment ratio needed to buy property and an acceleration in land sales.
To cool the overheating property market, Hong Kong authorities have been busy creating supply and Mr Tsang expects 61,000 new homes to come on to the market in the next three to four years. In the past 10 years, an average of 18,500 new homes were sold annually, he says.
The building and completion of homes almost doubled in the September quarter from the three months before, Hong Kong's transport and housing bureau says.
The completion of private residential units rose to 4,100 in the period, up from 2,100 in the second quarter and bringing the total to 11,100 so far this year, while the construction of private residential units increased to 5,100 in the third quarter from 2,500 in the previous quarter. That has taken the total to 11,700 units for the first nine months.
Shih Wing-ching, the chairman of Centaline, believes the bigger picture is more important. The property market in Hong Kong is heavily influenced by the mainland but the US dollar remains the deciding factor as the Hong Kong dollar is pegged to the greenback.
"Since there is no evidence showing the US is willing to pay back their billions of debts the only way to solve the problem is depreciation, and the Hong Kong dollar will depreciate as much as the US dollar. This means house prices will rise by the same amount," Mr Shih says.
business@thenational.ae
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Essentials
The flights
Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours.
The package
Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.
Killing of Qassem Suleimani
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Company%20profile
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Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
MATCH INFO
Real Madrid 2
Vinicius Junior (71') Mariano (90 2')
Barcelona 0
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Set-jetting on the Emerald Isle
Other shows filmed in Ireland include: Vikings (County Wicklow), The Fall (Belfast), Line of Duty (Belfast), Penny Dreadful (Dublin), Ripper Street (Dublin), Krypton (Belfast)
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
'The Batman'
Stars:Robert Pattinson
Director:Matt Reeves
Rating: 5/5
Find the right policy for you
Don’t wait until the week you fly to sign up for insurance – get it when you book your trip. Insurance covers you for cancellation and anything else that can go wrong before you leave.
Some insurers, such as World Nomads, allow you to book once you are travelling – but, as Mr Mohammed found out, pre-existing medical conditions are not covered.
Check your credit card before booking insurance to see if you have any travel insurance as a benefit – most UAE banks, such as Emirates NBD, First Abu Dhabi Bank and Abu Dhabi Islamic Bank, have cards that throw in insurance as part of their package. But read the fine print – they may only cover emergencies while you’re travelling, not cancellation before a trip.
Pre-existing medical conditions such as a heart condition, diabetes, epilepsy and even asthma may not be included as standard. Again, check the terms, exclusions and limitations of any insurance carefully.
If you want trip cancellation or curtailment, baggage loss or delay covered, you may need a higher-grade plan, says Ambareen Musa of Souqalmal.com. Decide how much coverage you need for emergency medical expenses or personal liability. Premium insurance packages give up to $1 million (Dh3.7m) in each category, Ms Musa adds.
Don’t wait for days to call your insurer if you need to make a claim. You may be required to notify them within 72 hours. Gather together all receipts, emails and reports to prove that you paid for something, that you didn’t use it and that you did not get reimbursed.
Finally, consider optional extras you may need, says Sarah Pickford of Travel Counsellors, such as a winter sports holiday. Also ensure all individuals can travel independently on that cover, she adds. And remember: “Cheap isn’t necessarily best.”
THE SPECS
2020 Toyota Corolla Hybrid LE
Engine: 1.8 litre combined with 16-volt electric motors
Transmission: Automatic with manual shifting mode
Power: 121hp
Torque: 142Nm
Price: Dh95,900
