€26 million spare? Buy an apartment in Hong Kong.

Two luxury penthouse apartments have gone on the market in Hong Kong for 26 million Euros. Demand from wealthy mainland Chinese buyers and also foreigners have caused property prices in the top end of the property market to rocket.
While most of the world is still reeling from the global property collapse, Hong Kong steams ahead.

By Mike Stock

The asking price for these two properties which are located at the top of Cullinan Twin Towers, the tallest residential development in Hong Kong, each with a floor space of 372m2 has been raised by 20%. This equates to €69,000 per square Metre. A spokesperson for Sun Hung Kai the development company said the decision was made after so much interest was shown in the properties.

The properties are located on the 91st- 93rd floors ,covering three levels. They come complete with their own outdoor garden and swimming pool.
Buying a property in Hong Kong is a must for the Super Rich mainlander as it gives them access to a residency permit which requires an investment of 6.5 million Hong Kong dollars,Roughly equivalent to €569,000 .
Earlier this year, a purchaser paid a 16.6 million Euros, or €21,000 per square foot, for an apartment in the Masterpiece luxury development in Tsim Sha Tsui district, making it the most expensive one-bedroom flat in town.
The Hong Kong's luxury home market should continue as long as investors can afford to pay, an executive director of Sun Hung is reported as saying. The company has gained 73 percent this year, beating the Hang Seng Property Index's advance of 58 percent.
The immense rise in Hong Kong prices beats any recovery in other international cities. Home prices in Hong Kong have risen by 26 percent this year although prices for non-luxury homes in Hong Kong are still 30 percent lower than their peak levels in 1997.The buying process
Buying a property in Hong Kong or Macao is not a problem as there are no restrictions for foreigners; the hard bit is finding the money to pay for it.

Mortgages

For Hong Kong nationals, a bank will finance as much as 70 percent of the price of the property. For foreigners one option is to arrange mortgages with banks in their home country but arrange for it to be handled through branch offices in Hong Kong as most international banks will have at least one.
A general rule is to take out a mortgage and not pay cash. This is because if the bank will allow you to buy and lends you the money, they will ensure the property must be in good title.

Want to find a bargain, let superstition help.

An apartment on the fourth floor, or for that matter any floor with a four in it, will be cheaper. This is because the Cantonese word for four, "sei," sounds similar to the word for "death." Also a property that overlooks a cemetery may sometimes be cheaper.

The purchasing process

The purchasing process is reasonably straight forward, the buyer puts down 5 percent of the purchase price when preliminary sales and purchase agreement are signed; another 5 percent is paid about two weeks later when a formal agreement is signed. The balance is due at completion which is usually six to eight weeks later. There are penalties for pulling out of a sale after the preliminary agreement is signed.
The broker's fee generally ranges from half a percent to 1 percent of the price; the lawyer's fee varies but usually is about 6,000 Hong Kong dollars (€525.00). Stamp duty is 0.75 percent to 3.75 percent of the price.

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