why House rents are increasing in Hongkong

[IndianExpat]

The world economy is going down again, however in Hong kong, house rent is going up continuously. House rent in many countries has fallen by 50% or more. Why house rent is not going down or at least stable in hongkon?

[Gene]

Originally Posted by IndianExpat

The world economy is going down again, however in Hong kong, house rent is going up continuously. House rent in many countries has fallen by 50% or more. Why house rent is not going down or at least stable in hongkon?

I'm reading that there are not many new rental units being built while the demand is still rising. So until new developments are built the cost of rentals are likely to stay on the high side.

Gene

[Suresh]

Yes Gene
You are true. That is the reason. There are always cycles in demand and supply for any item be it house or something else

[Gene]

Originally Posted by Suresh

Yes Gene
You are true. That is the reason. There are always cycles in demand and supply for any item be it house or something else

Yea it seems that way. I've noticed that it's not just in Hong Kong. The same is happening in other major cities around the world. Even in Los Angeles it is getting extremely expensive to buy or even rent a house or apartment. I have a feeling that it's most noticeable in Hong Kong because it effects many overseas workers that just don't make enough to keep up with the high cost of living there.

Gene

[Sachin145]

and houses will be built up up high