Hong Kong’s property prices are expected to fall in the near future on account of the ongoing economic crisis mainly in Europe and also in the United States. However, some feel the price correction would be minimal and nothing dramatic.
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December 30th, 2011—Hong Kong—Hong Kong’s lucrative real estate market could see fall in prices in early 2012 with the impact of the ongoing economic crisis in Europe reaching its peak. Hong Kong has one of the most mature real estate markets in the world with demand outweighing supply. The city’s real estate market had witnessed excellent growth over the past few years and many foreign investors have chosen to participate in the property market in Hong Kong. However, according to some analysts Hong Kong’s property market may be going through a correction phase and would definitely be affected by the economic crisis in both Europe and United States.
According to GuideMeHongKong.com (www.guidemehongkong.com), Hong Kong witnesses a lot of investment activity by cash rich investors from all around the world. With a free market economy and liberal laws for foreigners investing in the city, the real estate market has benefitted from having excellent demand from buyers from all corners of the globe. Many high net worth individuals continue to invest in prime properties in Hong Kong and with a large resident entrepreneur community as well, local residents have been buying properties in Hong Kong is high numbers. All this had led to continued increase in prices every quarter and also saw growing concerns of the real estate market going beyond the reach of ordinary citizens. However, with many investors choosing to play safe and avoid any undue risks in the near future, there has been a slowdown in demand for prime properties in Hong Kong and will most certainly result in a correction in prices in the near future.
However, as per GuideMeHongKong.com, the fall in prices would not be anything dramatic and correction could be only up to 5 per cent in current property prices. Investment in Hong Kong will continue to remain strong in 2012 and there are enough investors interested in various options in Hong Kong to ensure there is no sudden drop in prices or investors going through a major loss.