STRATEGIES FOR THE RESIDENTIAL MARKET TURN
A decade-long streak of rising prices comes to an end
The Hong Kong residential market is facing a double hit from rising interest rates and slower economic growth due to the intensifying US-China trade tensions. While we expect residential prices to fall 3.8% in 2019 – in the most optimistic scenario, the leasing market should stay firm as rental growth has been less volatile than price growth. By mid-2019, investors should be looking at the residential market again, when the impacts of rising interest rates and trade disputes should be more apparent.