Hong Kong Investment

Asian Cities

2H 2018

 

An unprecedented boom post-2009
Hong Kong’s property markets have seen a remarkable period of growth since 2009 driven by an array of positive drivers, both domestic and foreign. Measures put in place to address the parlous state of the world’s major economies post Global Financial Crisis (GFC) resulted in abundant liquidity and extremely low interest rates. Because of the US/HK Dollar peg, interest rates in the territory fell in tandem (and in inflation adjusted terms have been in negative territory for the past ten years), while excess liquidity found its way into local stock and property markets.

At the same time, Mainland Chinese capital began to look for opportunities overseas and became a significant player in an emerging pool of Asia-Pacific cross-border real estate funds. We also saw a boom in Asian (particularly PRC) tourism which proved hugely beneficial for the hotel and retail industries across the region while the impact of e-commerce transformed the supply chain and the outlook for the logistics sector. In Hong Kong, as PRC tourist numbers dwindled from 2014, the retail market fell in parallel and is only now beginning to recover. Logistics on the other hand has remained a popular asset class among developers, institutions and end users with values propelled ahead not just by the e-commerce revolution but also a chronic shortage of supply.

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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