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Showing posts with the label Outlook for the Hong Kong Property market 2014

Outlook for the Hong Kong Property market 2014. Are HK property prices going up again?

I've received a number of emails since my last update on this blog, asking if Hong Kong property prices will start to rise again.
Currently, by applying a mathematical calculation of cost of rent vs cost to borrow, Hong Kong property is relatively fairly priced. That is, not excessively overpriced, nor excessively under priced.
In my mind, the biggest deciding factor is still:
1) How long the Fed will keep interest rates at current levels; and
2) To what extent the property cooling measures will be eased in Hong Kong. That is, will they be eased prior to the Fed increasing interest rates, in tandem with the Fed increasing interest rates, or at a lag in time from the time the Fed increasing interest rates.
If you knew the answer to these questions you could with great certainty make money (or prevent losing money) with regard to investing in property in Hong Kong.
My prediction is still that the cooling measures will be eased in Hong Kong in tandem with the Fed increasing interest rates.…