Record property prices and higher interest rate rises make investors anxious about Hong Kong property market
Colliers now suggests some investors are starting to view Singapore and Shanghai as offering better investment potential than Hong Kong
Nearly half of experts polled by global property consultants Colliers International suggest the economic outlook and likely rising interest rates are the two most important factors for Hong Kong investors faced with making investment decisions for 2018.
The property firm polled the opinions of 35 leading investors and developers who have been actively seeking investment opportunities in Hong Kong and the rest of the region, and noted a decidedly more cautious approach to the coming year in Hong Kong, after months of soaring capital outlays in 2017.
In the next 12 months, officials at Colliers predict yields are likely to drop, and capital costs rise, triggered by likely interest rate rises. It also suggests some investors see Singapore and Shanghai as offering better investment potential than Hong Kong.
“More than 45 per cent of respondents consider the economic outlook and likely rising interest rates as the two most important factors when making investment decisions for 2018,” its survey concludes.
Yields are expected to persist as the US Federal Reserve increases the cost of borrowing and tapers off its balance sheet over the next year.
Antonio Wu, Colliers’ deputy managing director of capital markets and investment services,