JLL: Fed rate hike has no impact on Hong Kong property market for now; continued rate hikes will hit the commercial real estate and residential markets.

Regarding the U.S. Federal Reserve and the Hong Kong Monetary Authority's announcement of a rate hike, Joseph Tsang, Chairman of Jones Lang LaSalle (JLL) Hong Kong, responded that since major Hong Kong banks have not raised their prime rates in response to the U.S. rate hike this time, there will be no impact on Hong Kong's property market for now. However, in the long run, if it is confirmed that rate hikes will continue, the impact on commercial real estate will be greater, as buyers will demand higher rental yields, and owners will need to cut prices to sell. In the residential market, besides affecting buyers' repayment capacity, it will also increase developers' financial costs. Some developers may rush to clear inventory to reduce financial pressure, which will also affect developers' appetite for land acquisition.