Why the Hong Kong property market could drop $20 billion… thanks to the UK

The Chinese government crackdown on dissidents in Hong Kong could cost the property market dearly.

But no one thought it would cost 20 billion dollars, until now.

13,100 to 16,300 households are expected to move to the U.K. via their British National (Overseas) visas in 2021.

A report by Bloomberg Intelligence details the shocking figure.

Hong Kong homeowners may sell as much as HK$150 billion ($19.3 billion) worth of property this year when residents emigrate to the U.K.

The number represents 0.9% to 1.1% of households living in privately owned homes.

If all of them sell their properties to fund their move and living costs, they could generate a maximum of HK$150 billion in 2021 alone, Bloomberg estimates show.

Why is it the British government’s fault? Well the UK handed power over to China back in the 90s. The deal with China has maintained democracy in Hong Kong for 50 years.

Fast forward to 2020, and many believe China’s degradation of democracy is a sign of strength. New laws that force elected members to be “patriotic” to China replace democracy.

So the UK responded by making it easier for Hong Kong residents with BN(O) status to obtain citizenship – and now that is prompting a migration and a drop in the property market.

Property listings at Centaline, Hong Kong’s largest real estate agency, surged by 44% from a year earlier to more than 40,000 homes.