trevfly
A little economics 101 lesson:
1. Interest rates low = Property prices rise.
2. Interest rates high = Property prices fall.
We are and have been for the last five years in 1. We are about to go into 2 and in a very big way. If you haven’t already noticed inflation is on the rise world wide but is particularly bad in Asia. While currencies like the HKD are pegged to the USD inflation will become a very very big problem here, but once interest rates start rising in the US (probably late this year or early next) they will rise very quickly to try and put the inflation Jeannie back in the bottle.
For once the stock market has had zero effect on prices,
Historically property prices benefit from a falling equity market. So do commodity markets. Property prices in HK over the past twelve months reflect this relationship.
Based on historical precedence, property prices in HK have probably reached or about to reach a crescendo with only one place to go. Down.