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Hong Kong’s property market at a turning point

December 2015

Hong Kong’s property market is bracing itself for the impact of the U.S. interest rate hike. “We are expecting a steady rate hike of a total accumulated 100 base point (bps) rise during 2016. While the real interest rates will edge from negative to zero, property prices will see a drop in Q2 next year,” said Simon Lo, Executive Director, Asia research and advisory, Colliers International.

Nigel Smith, Managing Director, Colliers Hong Kong, said: “We see Q2 as the critical turning point for the property market in Hong Kong. Investment prices are expected to fall up to 24%, with retail leading the pack, followed by residential at -15%, industrial -14% and office -5%.