This study seeks to investigate all considerations that are connected with an investment in the private residential market in the Hong Kong SAR. Within the framework of a due diligence analysis, commercial, legal, tax and technical aspects are reviewed in order to evaluate opportunities and risks. As the property market is distinctively connected with the political and economic surroundings, its interdependencies are critically reviewed. A scope is set on the analysis of the price movement, its influences and its reliability. The reader will be enabled to draw conclusions on the influence of macroeconomic factors on price movements and thus be able to differentiate between rational and irrational pricing.