January 28, 2011 / 11:46 AM / 9 years ago

Hong Kong housing world's most expensive - Savills

HONG KONG, Jan 28 (Reuters) - Hong Kong housing is the most expensive in the world as negative real interest rates and ample liquidity boost demand while new supply remains tight, said Savills Plc (SVS.L) in a research of four top cities.

Hong Kong is the most expensive centre for every household type, including the global billionaire, property adviser Savills, said in a new Global Cities survey released on Friday.

The territory was 55 percent more expensive than London, with Moscow 7.4 percent higher than the British capital, but New York was 15 percent cheaper than London on current sterling values, it said.

The growth in the price of a CEO’s home in Hong Kong had risen 148 percent in the past five years, compared with Moscow’s 110 percent rise and London’s gain of 47 percent while New York had fallen 7 percent, it added.

Luxury apartment rents in Hong Kong are increasing alongside an influx of expatriates, the adviser said.

Demand from wealthy mainland Chinese and low mortgage rates, since the territory tracks U.S. monetary policy as the Hong Kong dollar is pegged to the U.S. currency, helped lift demand and property prices in Hong Kong.

The Hong Kong government has imposed a slue of measures in the past year trying to rein in house prices, including raising stamp duty on short-term transactions and tightening mortgage restrictions. [ID:nTOE6AI04Z] (Reporting by Alison Leung; Editing by Jon Loades-Carter)

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