8 July 2014 - Figures released by the Rating and Valuation Department showed Hong Kong’s property price index reached an all-time high in May. An index following rentals also climbed upwards for three months in a row.
According to a report by Barclays, home prices are now 13.5 times that of gross household income, which is higher than the figure of 13.2 recorded around the time of the Asian financial crisis back in 1997.
Barclays warns that the property market will take a longer time to recover from possible volatilities. The firm also stated that although the July 1st rally and subsequent protests haven’t affected commercial activity, property investors should be on the alert.
Centaline Property founder Shih Wing-ching weighed in, saying it’s hard to determine the impact of Occupy Central on the property market. Nonetheless, Shih warned that the overall economy would be badly affected if the city descends into chaos under extreme circumstances.
