China's Economic Overview and Challenges
Hong Kong property prices have been edging down, but are
expected to stabilise this year
Property prices and rents have been
trending downwards recently
Hong Kong Housing Price and Rent Indices
150
140
8 130
Index (1/2016 = 100)
120
12218 2
110
100
80
2016
2017
2018
2019
2020
2021
-Price
-Rent
Property prices are expected to stabilise this
year, with both upsides and downsides at play
US and Hong Kong Interest Rates
Forecast
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2008 2010 2012 2014
Fed Fund Rate
2016 2018 2020 2022
-Hong Kong Prime Rate
1.75%
•
•
Source: Rating and Valuation Department, data as of 29/1/2022
Hong Kong's residential property prices edged downward in
the 3 consecutive months to December 2021 amid a
lacklustre stock market.
As of end-December 2021, both property prices and rent
indices were up 3.3% from end-2020.
BEA東亞銀行
.
•
Sources: Bloomgerg; BEA Economic Research Department, data as of 28/1/2022
The US Fed is expected to kickstart interest rate hikes this
year, but Hong Kong's prime rate will likely lag behind Fed
actions and may remain unchanged in 2022.
This and limited supply are countering the adverse impacts
of Covid-19 and concern about mainland policies.
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