Showing posts with the label Park Island price trend

An update on Park Island property prices as we head towards 2016

Let's take a look at how prices of property in Ma Wan / Park Island performed this year so far.
A year ago, in August 2014, I made a prediction as to where prices for Hong Kong property might go, in my post: What will Hong Kong property prices do?
In that post, I wrote the following:
"If I had to make a guess I would think that overall, prices will keep rising in 2015 in Hong Kong. I can't see interest rates rising at all until late 2015, and even then they will rise only very very slightly, if at all. Property cooling measures are very unlikely to be increased, and they are more and more being "priced in" which means that eventually, when they are removed, the removal of property cooling measures in Hong Kong will be very supportive of property prices.
All in all, the factors going forward, weighed up, point to quite decent property price growth for Hong Kong next year."

It turns out I was spot on the mark.
I also included a graph at that time, providing an indi…

How will the US debt crisis affect Hong Kong property prices?

The anxiety of the US debt crisis caused mayhem on the world's stock markets last week, and the Hang Seng in Hong Kong was no exception, dropping nearly 2000 points.
The fear of an economic slowdown also apparently affected property sales in Hong Kong, with there being a number of reports of recent buyers of apartments forfeiting deposits and failing to complete purchase agreements for fear that property prices might fall.
So called property "experts" in Hong Kong appear divided on whether the recent crisis will have any effect on the continued growth in property prices Hong Kong has seen over the last few years. My own view is that prices are likely to keep rising, after perhaps a month or two of short-term uncertainty.
The US Fed said at its last policy meeting that it will keep its benchmark short-term interest rates at close to zero through to at least mid-2013. This ensures continued super-cheap borrowing in HK (due the the HKD peg to the USD), and it means we will l…