CURRENT MARKET SITUATION
Hong Kong is a dynamic, exciting and fast moving property marketplace. It is to Asia, what New York is to the Americas. The big difference now, is that Hong Kong, as part of China is also the gateway to the world's fastest growing, and soon to be largest economy, so investment potential here is much greater than just about anywhere in the world at this time.
The Credit Crunch was slow to affect the Hong Kong market - not really hitting until October 2008. When it did, its effects were short lived and by Q2 2009, the market had begun to rise again.
By June 2009, the Hong Kong property market was in the early stages of a Bull run. Our prediction is for a 25% upward correction in certain property sectors between June 2009 and June 2011. This will only take these sectors back up to their 1997 values, so there is still over a decade of latent capital appreciation to ultimately emerge.
Due to the fundamental economics of the region, it is generally accepted by economists, that the Global Recovery, will be led by Asia.
When the Billionaires emerge, as they do on an almost daily basis in China, they want to have a home in Manhattan - and the Manhattan of China is and will remain Hong Kong.
According to Frank Marriott, M.D. Commercial Property at Savills Hong Kong, at last count "Hong Kong has 70,000 residents who own factories in China". Given a total population of 7m, this is an impressive number. It means that one in a hundred people own a manufacturing factory in China.
When Chinese companies want to raise capital from the international markets, they list on the Hong Kong exchanges because of
- the geographical proximity,
- the fact that Hong Kong is one of the biggest exchanges in the world,
- the common language
- the high degree of corporate governance.
When international investors seek to invest in China, they prefer to do so through the Hong Kong exchanges for the same reasons, and also because of the British Legal system which operates in Hong Kong. This year, it is expected that there will be $46 Billion worth of IPO work which will move to Hong Kong.





