New Business market report from Business Monitor International: "Hong Kong Real Estate Report Q1 2014"
Boston, MA -- (SBWIRE) -- 01/07/2014 -- The real estate market in Hong Kong is characterized by consistent demand stemming from its financial and retail reputation as well as notable structural challenges as its integration with China continues. Significant increases in middle-income Chinese tourists has boosted both real estate and industrial investment opportunities, as international brands and modernized logistics facilities compete for space on all levels.
Though retail and industrial rents have been boosted by increased consumption from the mainland, long term questions remain as to the pattern of Chinese demand as well as Hong Kong's own economic slowdown. With the abovementioned factors in mind, we have revised our real GDP growth forecasts marginally upwards to 2.8% from 2.4% previously. In 2014, however, BMI maintains projection for GDP growth of 3.0%, which remains below consensus estimates of 3.5%.
View Full Report Details and Table of Contents
Economic momentum in the region, particularly in China, appears to be on the uptick and this is likely to translate into stronger shipments for Hong Kong. However the economy faces tough headwinds, from its exposure to China to the impact of looming interest rate rises in the US that could depress prices after years of high growth.
- Demand and consumption patterns in Mainland China as well as U.S. interest rate decisions will be the most significant external risks to Hong Kong's commercial real estate sector through 2013 and into 2014. At present, the government is struggling to manage its relationship with CCP Beijing and a population increasingly resistant to further economic integration with the mainland. Over 70% of all tourists in H113 originated from Mainland China, a revenue stream which would have profound effects on the market should it be reduced or restricted. With regard to the United States, the present currency peg directly links US monetary policy decisions with Hong Kong's own market, making any increase in interest rates even more significant.
- Hong Kong's economy slowed in Q313, with real GDP growth decelerating to a seasonally adjusted 0.5% quarter-on-quarter (q-o-q) from 0.7% in the previous quarter. Unsurprisingly, the main drag on growth came from slowing private consumption and weak exports. Indeed, retail sales have largely been slowing, with growth decelerating from a high of 20.7% y-o-y in April to just 5.1% in September. Diminishing support from the export sector was also unsurprising, given that container throughput has been in contraction for most of 2013.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Business research reports at Fast Market Research
You may also be interested in these related reports:
- Singapore Real Estate Report Q1 2014
- South Korea Real Estate Report Q1 2014
- United States Real Estate Report Q1 2014
- Peru Real Estate Report Q1 2014
- Philippines Real Estate Report Q1 2014
- Bulgaria Real Estate Report Q1 2014
- Mexico Real Estate Report Q1 2014
- Bosnia-Herzegovina Real Estate Report Q1 2014
- Japan Real Estate Report Q1 2014
- Qatar Real Estate Report Q1 2014
Copyright © 2005-2014 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-593-5640 (International)