JLL: Fed rate hike has no immediate impact on Hong Kong's property market; sustained rate hikes will hit the commercial real estate and residential markets.

Zhito Finance APP has learned that in response to the Federal Reserve and the Hong Kong Monetary Authority announcing interest rate hikes, Joseph Tsang, Chairman of JLL Hong Kong, responded that major banks in Hong Kong did not raise their prime rates this time due to the U.S. rate hike, and there will temporarily be no impact on Hong Kong's property market. However, in the long run, if it is confirmed that rate hikes will continue, the impact on commercial real estate will be greater, buyers will demand higher rental yields, and owners will need to cut prices to sell; in the residential market, in addition to affecting buyers' repayment capacity, it will also increase developers' financial costs. Some developers may rush to clear inventory to reduce financial pressure, and it will also affect developers' willingness to bid for land.