Daily News and Transactions across Greater China from Knight Frank
Hong Kong home demand to be capped by slowing economy, policy uncertainty
Aug 08, 2012
According to an economist, the waning domestic economy and uncertainty over the new administration's policy direction could limit the upside for home prices. A 5-10% correction in home prices is expected.
However, a sharp decline in prices is unlikely as current homeowners are still on low mortgage rates.
In the office market, further downside pressure is expected on Grade-A office rents due to rising unemployment that may have a latent impact on GDP growth.
Meanwhile, despite the moderation in both retail sales and rents due to slower spending by Mainland visitors, global retailers show no signs of delaying their expansion plans. As a result, retail rents are expected to rise 15% in 2012 versus the 30% increase last year.
Knight Frank Greater China Property Market News Summary