(As originally posted elsewhere):
Too many people in HK have bought property thinking that the "new normal" is represented by interest rates of 1-2%, and they will stay there indefinitely. They may have forgotten that low rates came about as a temporary remedy for a global economy in freefall, and those low rates are unlikely to persist much longer IMHO. If such low rates are sustained through the remainder of 2010, I will be surprised.
In fact, there are clear signs that rates are beginning to rise already. The only question is: how far will they go, and how fast will they go up. I think it is very likely that the average HK property investor may be in for a rude shock.
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