Empty apartments and plummeting rents in the world's most expensive housing market: How the exodus out of Hong Kong could change its real-estate scene in 2021
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Katie Warren
Apr 21, 2021, 12:27 IST
China's new national security law sparked an exodus from Hong Kong.REUTERS/Tyrone Siu
The exodus could cause Hong Kong's notoriously high rents to fall 10% in 2021, per a new report.
The city could also have the highest number of vacant homes that it's seen in 18 years.
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For years, Hong Kong has been notorious for its astronomical real-estate prices. In 2020, it was named the world's priciest housing market for the 10th year in a row.
In their wake, Hong Kong's infamously high rents could drop 10% and vacancy rates could hit an 18-year high, bringing a major shake-up to Hong Kong's real-estate market, according to the South China Morning Post, who cited a new report from Bloomberg Intelligence.
But 2021 could be a different story. After China passed a national security law last year that threatened life imprisonment for pro-democracy protesters, the UK saw record numbers of Hong Kongers applying for British National (Overseas) passports, known as BN(O)s, which allow them to live in the UK but don't automatically grant them the right to work.
The British government said it issued about 200,000 such passports to Hong Kongers in the first 10 months of the year at a rate of about five passports every minute.
In January, the UK made it it even easier for Hong Kongers to live and work there, launching a new visa scheme for BN(O) holders to live and work in Britain and apply for citizenship after six years, according to a government statement. They can apply for the visas online from their homes in Hong Kong.
In total, roughly three million Hong Kong residents are eligible to apply for BN(Os) and move to the UK, according to a British government study.
China denounced the UK government's recent move and said it would no longer recognize BN(O)s as valid travel documents.
In 2020, London homes that sold for 10 million pounds (about $14 million) or higher were "dominated" by buyers from Hong Kong and China, luxury real-estate agency Beauchamp Estates said in a January report provided to Insider.
Hong Kong, meanwhile, could have 66,683 homes sitting empty in 2021, up from 52,370 last year, according to the Bloomberg report.
"This is the biggest emigration boom in Hong Kong's history," Andrew Lo, a Hong Hong emigration consultant, told Nikkei Asia last month. "People from different levels of the society, aged from 18 to 80, are all talking about emigration."
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