The real estate industry is one of the major sectors in Hong Kong and it plays an important role in the economic development of the country. There is a growing demand of both residential and commercial properties and this demand is intensifying following the increasing population, formation of new businesses and increasing purchasing power by the consumers.
In Hong Kong, residential property has been a popular mean of investment since the last a few years. At present, investors are showing interest in commercial properties as well considering the fast inflow of various foreign businesses. In recent years, different foreign organizations have set up business in Hong Kong and experts are of the opinion that these number will increase in the future, which will further influence the growth of the real estate market in different Hong Kong districts.
What the Property Consultants Say
Property consultants of Hong Kong are anticipating approximately 10% rise in prices of residential properties and in retail rents within the second half of 2014 owing robust business development in Hong Kong and the low-interest pace environment. A property market that is sizzling of course ensures a constant demand from the realtors. The booming market has thus draw the attention of market professionals and new entrepreneurs are choosing this field to develop their career.
The Real Estate Market for 2013-14
For the fiscal year of 2013-14, the Hong Kong government is intending to increase the supply of land to invite more business ventures and to develop real estate property business relatively. The government is following the same policy that it followed for the last fiscal year. Moreover, the same rule is being followed to increase the rate of residential completion within the next a few years. The Hong Kong government actually has planned to increase the level to 20,000 units every year.
Starting a Real Estate Business in Hong Kong
To start a real estate business in Honk Kong, one needs to meet a few criteria. The government schedules a few rules that are to follow from applying for the license to starting the business. Here we will discuss these issues in brief. Let’s learn first who can apply for the license and what criteria to meet to get one.
Who Can Apply for A Real Estate Agent License?
- Individual professionals who are already holding a real estate license are able to apply for the agent license
- If any professional tend to develop a partnership business then any of the two partners must have an agent license to continue with the business successfully.
- All the real estate agencies are supposed to have one manager who will hold the agents license to manage the business operations effectively.
- In order to avail an estate agent license, the agencies have to show particulars of a business, along with the previous license.
- Individual, holding sales person license will be able to work as professional of a particular licensed agency only
What is a Real-Estate License Pre-requisite
If we want to qualify as a real estate agent in Hong Kong, we have to satisfy the government-determined pre-requisites. For example, the applicant should be an adult to be eligible for the agents’ license. The person has to proof that he or she has been 18 year old showing enough documents. Moreover, the applicant must have to complete the Form V education level (that stands for secondary education level) to avail the license.
Last but not the least, an applicant has to pass the industry examination at least 12 months before the license is issued. Two different industry exams are arranged by the government to choose eligible candidate to issue them license. These are- EAQE and SQE that stands for Estate Agent Qualifying Examination and Salesperson Qualifying Examination.
Future of Hong Kong Real Estate Market
In the future, Kowloon is going to be the most important source of commercial land supply in Hong Kong. To increase business prospects of the district, the Hong Kong government is planning to speed up the process of releasing two individual bunch of government sites. Experts believe that this will promote commercial development not only in this district but in the entire Hong Kong. Along with this, they are also preparing to develop three more business and commercial sites in this district within the fiscal year of 2013-14.
In order to stabilize real estate business in Hong Kong, the government is also ready to provide more than 16 hectares of land in Tuen Mun and Tsing Yi districts. This will promote the growth of logistics industry to some extend. All these initiatives will provide more than 3.2 million of logistics facilities in Hong Kong.