According to the Hong Kong Rating and Valuation Department's announcement of the private domestic price index for February, Wilson Ng, Executive Director of Valuation & Advisory Services at CBRE Hong Kong, stated that geopolitical tensions in the Middle East have not yet impacted the Hong Kong property market. However, if the situation persists, rising oil prices could lead to inflation, subsequently pushing interest rates higher, which would negatively affect Hong Kong's real estate sector. Following the outbreak of unrest in the Middle East, capital may flow into Hong Kong. Compared to other investment categories, Hong Kong residential properties are relatively stable and are currently in a phase of recovery or growth. It is believed that Hong Kong residential properties hold certain appeal and will attract more investors to the market. On the other hand, the Hong Kong Interbank Offered Rate (HIBOR) has continued to decline since the fourth quarter of last year, falling by over 1% cumulatively. If HIBOR remains low, the reduced borrowing costs will attract more buyers into Hong Kong's residential market and support housing prices. He maintains his forecast from the beginning of the year, predicting that Hong Kong's residential property market will continue to rise in 2026, with growth more pronounced than last year, estimated at approximately 3% to 5%.
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