redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2

How Will The Rate Hike Affect The HK Real Estate Market?

Hong Kong Major Report | January 2016

The linked exchange rate mechanism between the Hong Kong Dollar and the US Dollar meant Hong Kong witnessed a prolonged period of historically low interest rates in recent years following the Global Financial Crisis. This helped strengthen property investment demand in Hong Kong.

Investment demand from Mainland Chinese individuals, companies and institutions has surged during the same period. Strong investment demand and the low cost of financing backed by limited supply pushed property prices to new highs.

The increase in U.S. interest rates in December 2015 has triggered concerns among investors over the outlook for the Hong Kong real estate market. This special report by CBRE Research benchmarks historical interest rate hikes and property cycles; analyses the key factors that could affect pricing levels; and explains why we think the Hong Kong property market will experience a soft landing.


Marcos Chan
Head of Research, Hong Kong, Macau & Taiwan
+852 2820 2886
  Rosanna Tang
Associate Director, Research Asia Pacific
+852 2820 2806


How Will The Rate Hike Affect The HK Real Estate Market?