Alternative investments

Real Estate: Hong Kong explores cavern to fix shortage problem

Space-strapped cities like New York and San Francisco may think they have it rough, but the booming Hong Kong may have an even more immediate problem.

More than 7 million people live in the 427 square mile autonomous region of the People’s Republic of China. Country parks take up 41 percent of the land mass, all of which is dotted by steep hills, making it difficult to build anywhere. Many high rises have maxed out on height restrictions. Meanwhile, housing prices hit record highs this spring: Hong Kongers are paying nearly $1,500 per square foot. The average home costs $1.8 million.

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