Hong Kong’s property prices are likely to climb 5%-10% in 2011, according to real estate firm Cushman & Wakefield.
The rise is likely to be driven by the city’s lack of land supply in the next three to four years, and also the low interest rate environment this year.
Kent Fong, senior director of investment, capital markets expects the HIBOR mortgage rate offered by the banks in Hong Kong will not rise significantly this year amid the low interest rate environment.
Fong added: 「The Special Stamp Duty announced last year has effectively kept short-term speculators away. The impact was predominately seen in January with a fall in the number of transactions.
「However, driven by mid- and long-term investors, investment sentiment heated up again in February and March although some investors have become more cautious after major banks raised the HIBOR linked mortgage rate,」 he added.
Though the property market is hindered by the possible rate hike, he expects property prices to go up 5%-10% this year.
However, he advised buyers to evaluate whether they can afford their mortgage payments before making their purchase decisions.