Since the second round of quantitative easing ended, the market has remained concerned about where the United States economy is going. Much depends on what the Federal Reserve, which sets interest rates, will do. The Fed's minutes showed that the central bank might have to consider further stimulus, especially if economic growth remains slow. But a body of opinion opposes stimulus because of the risk of inflation.
Elsewhere, the mainland earlier announced that inflation had shot up to 6.4 per cent, and in Hong Kong, the government is issuing iBonds as a way to fight against inflation. Although the rise in property prices has slowed, rents are going up. It is clear inflation is a serious problem, and it remains one of the reasons people are still turning to property for investment. Even at low yields, the returns are higher than those offered by bank accounts.
So, despite lower volumes, property prices remain strong. In this issue of LuxeHomes, we examine why new projects, such as Imperial Cullinan, are attracting strong interest despite premium pricing. We also have a special report on electrical appliances, focusing on what makes a kitchen special and how best to enjoy music.