stillalbatross
I couldn’t care what 49 out of 50 analysts are saying. Most have a vested interest in peddling a particular position. Are they saying how much it will decline by? You have only got to look at the last 11 years to see what has happened to rents in Hong Kong. They have at least doubled and that includes the declines from 911 (2001), SARS (2003) and the GFC (2008). If you think it is going to decline over the next 10 – 20 years, and that is what all new pilots need to consider, you’re dreaming. Remember the HPA is a fixed amount and all new pilots are going to have to fight with the company to have it raised to keep up with inflation and the current market prices. Look how much fighting we have had with the company just for pay rises over the last 11 years. It speaks volumes of what all new pilots will face negotiating any future increases in the HPA. Even if we can’t get the HPA increased for all new pilots right now, it should at least be pegged to the HK rental index.