Categorized | International

Global Economic Uncertainty Impacting Property Market in Hong Kong

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The residential real estate market in Hong Kong is feeling the impact of the economic uncertainty that continues to sweep the globe. Residential real estate sales were down in the last month by more than eighteen percent.

 

Both the average and luxury residential property markets are feeling the effects of the troubled global economy. Luxury homes, which at one time avoided the impact of the general economy, experienced a drop in sales by more than seventeen percent.

 

The office sector of commercial real estate also experienced a sharp decline in the past month, as sales dropped astronomically. Only the retail leasing commercial real estate sector performed well, with international businesses leasing some of Hong Kong’s prime locations.

 

Rents in Hong Kong have also fallen amidst the current situation of global economic uncertainty. Rents fell by more than one percent in January. Only in two areas of Hong Kong did rents increase during the month of January.

 

The massive decline in the number of sales in both the residential real estate market, and the office sector of the commercial real estate market is certainly alarming to economists in the region. There is no clear picture as to whether or not the current economic state will continue to impact the region as it did in January.

 

Many are hopeful that Hong Kong will be able to avoid any further effects, though the performance of the last month will certainly be difficult to overcome. There is hope that the strong performing retail sector will help to avert any further declines stemming from the global economy, but the big picture is still relatively unclear

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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