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Foreign investment will be the driving force behind a resurgence in Hong Kong property prices ahead of China's imminent entry into the World Trade Organization (WTO), according to a leading property company.
With China's entry into the WTO, more overseas funds will buy into the market to capitalize on investment opportunities, and more overseas companies such as leading telecom players will acquire space, either through acquisition or rent, to open branches and house executives," said Kenneth Ng, CB Richard Ellis' Hong Kong managing director.
In releasing a research report, Hong Kong 2000 Annual Property Investment Review, the international property consultancy firm forecast a rise in office sales and rents in 2001 in Hong Kong.
The company said it expects the sales price of prime office space to rise at least 15 percent to 20 percent, while that of luxury residential properties will increase 5 percent to 10 percent in 2001.
"This sustains the upward trend seen in the past 12 months, and confirms sentiment that Hong Kong is still considered by foreign investors and companies as the gateway to China," Ng said.
A total of 57 transactions of over 100 million HK dollars (US$12.8 million) were recorded in Hong Kong across all property sectors during 2000, and value of these amounted to 15.4 billion HK dollars (US$1.97 billion), up 15 percent from 1999.
(Xinhua 12/21/2000)
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