I heard at the weekend that a friend has recently paid rather less than 2 million for a 700 sq ft flat in Po Wah Yuen, despite the owners trying to haggle for more. They appeared to accept that given the current state of the market, both in HK and on Lamma, they could no longer push for the ridiculous prices of a year ago. It's still a lot to pay for a crappy concrete box, but hopefully suggests prices (and rents) will start coming down in line with market analysts' predictions.

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Friends, Romans, countrymen, lend me your ears.

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Friends, Romans, countrymen, lend me your ears.

Have to agree with Alan that a crash is coming.

I've spent the past two years fretting over the state of the property market on Lamma, as I have a huge menagerie of pets, and an affordable 350 sq foot flat is not an option. (My pets would make my life hell!!) Yet 2nd floor dwellings,.. in fact all property prices have gone mad for what you get!!

I ALWAYS look at the estate agents boards when I pass.

For the past two months I have noticed a huge increase in available flats. for example, last year, there were only two to five flats for rent, at extortionate prices. Now at the beginning of Jan and also february,.. there were 14 flats for rent. Prices ARE slowly dropping.

is the ferry collision? Pet owners tired of the dog poisoner and villagers that support this sick bastard? Construction everywhere? Dumping everywhere? Stupid prices for what you get? Weekends being gridlocked with tourists?

Who knows?

But there are a lot more flats available now, and the prices are dropping.

And it is still wishfull thinking. In the West prices fell rapidly because of distresed sellers who could no longer afford their mortgages. The speculators on Lamma can afford to hold on because most own 50% equity or more. A break in the currency peg would actually make property more expensive - and this is on the cards. For instance, if outside investors perceived that the HKD was strengthening,it would encourage more of them to enter the market to leverage both property and forex gains. In turn, the Government would have to keep interest rates low to prevent the dollar strenghening too much. This in turn would drive more property speculation.

Hong Kong is basically a shit hole and the only reason I am here is that I can earn decent money and save, ok it is a better shit hole than London but is still a shit hole. It always surprises me that people choose to live here who don't need to work when there are much better places in the world to live. Lamma is literally a just a more laid back shit hole with the open sewers and dog shit everywhere.

Not quite as easy to just move wherever you like though is it?!

It surprises me more that you would rather live in a `shit hole' as you call it just to make more money than it does that people actually enjoy living in HK and Lamma.

Each to their own.

It surprises me that people don't see a shit hole for what it is and delude themselves into thinking they are living in some sort idyllic setting.

Yep I have some mercenary tendancies and don't delude myself or pretend otherwise.

It surprises me that you think many people think lamma is idyllic. It is far from it but it is better than living in most places on the island or Kowloon unless you want to pay more than $50,000 a month for something good. Lamma is not the best spot but is far from the worst.

Lamma is cheap and has a good bar scene.

I guess the earning 'decent money' part of your plan isn't going so well then is it.