Easy money policies a boon for Hong Kong real estate sector
Experts say money generated by loose policies usually goes into perceived secure markets or riskier assets for opportunistic returns
With excess investment dollars being generated by loose economic policies by the major central banks, global investors are looking for places to park their money.
For real estate specifically, investor demand tends to be polarised, according to property consultants.
"They are focusing either on perceived safe markets with defensive characteristics or seek to target higher, more opportunistic returns via investment in riskier assets," said David Raven, regional director, Asia Pacific capital markets at JLL Hong Kong.
Considered as a safe market, Hong Kong would benefit and see an increase in activity and upward price pressure after a dull 2013, he said.
Whilst they do not like it, buyers have adapted to cooling measures
"Prime Hong Kong real estate is considered defensive and safe. The economy is stable, there is strong governance and rule of law, the current interest-rate environment makes it possible for investors to achieve immediate positive returns and yet the market benefits from China's strong growth drivers," he said.
Meanwhile, there is a tight supply of land and commercial property in the city. "All of this puts upward pricing pressure on the market," said Raven.