In this month's Asia Pacific Watch we focus on Hong Kong. Hong Kong was one of the best performing real estate markets globally for the period 2007 to 2013, as to IPD, reported an annual average unlevered all property total return of 14.3%. As the recent pro-democracy demonstrations, which started on September 28, have now continued for over a month, concerns around the potential impact to the broader economy and, ultimately, the real estate market are growing.
The short term impact thus far is limited to selected retailers through slower foot-traffic of both visitors and residents in the main shopping districts that are occupied by the demonstrators. Investment sentiment and consumer confidence, however, remain fairly strong and serve as important indicators for the potential longer-term effects on the economy.
Source : CBRE Global Investors