Interest Rate Cut Moves Property Prices In Hong Kong Again!
So another tumultuous week on the worlds financial markets.Yes here we are again repeating ourselves
So what effect will it have on property prices here in Hong Kong?
Well on the one hand things could look pretty rosy in the profit garden. The local banks have followed suit and cut interest rates so for the first time in a very long time real savings rates are below inflation .That means you need to spend your money not save it. This should encourage end users and investors alike.
Indeed some leading estate agent CEOs are predicting 50% increase in prices this year!
There is also the fact that Chinas economy is growing at the fastest rate for some years and that has a direct knock on effect to Hong Kong's economy. That is low unemployment rate and higher consumer confidence.
That combination could be a powerful driver of the market.
There are however some clouds on the horizon namely 'World wide recession' the fed didn't cut interest rates for nothing and their rather dramatic timing has got some pundits worried that another shock to the system is lurking around the corner just waiting to be uncovered by the general Market.
It will be interesting to see how exactly this all pans out.
There seems to be a general mood of optimism in the Hong Kong market and it will not take much to change the mood of speculators, that's important because once they enter the fray gain we could see a really big move in prices.
In our next article we will compare Hong Kong market to others in the region to see if Hong Kong property is really a good investment.
Source: http://ezinearticles.com/
Added: March 19, 2008
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