HK property prices likely to fall due to inflation...

[Dennis Ng]

can you really trust what some of these analysts say?

Many analyts in early 2008 said that HK property prices should do well becos property is a good inflation hedge. Now analysts are saying that HK property prices might fall becos of concern about inflation.

Can these analyts make up their mind? Otherwise, they sound lunatic.

Cheers!

Dennis Ng, http://www.HousingLoanSG.com

See below comments:

Hong Kong's inflation accelerated in June to the fastest pace in four months as food and energy costs climbed. Local lenders including BOC Hong Kong (Holdings) and Hang Seng Bank last month raised their mortgage rates for some customers to deflect the squeeze on lending margins.

'Inflation is giving many people second thoughts about buying properties,' said Alnwick Chan, a Hong Kong-based executive director at property research company Knight Frank LLP. 'There's going to be a correction but it won't be a crash.' Hong Kong has the most expensive luxury home prices in Asia, US$10,490 to US$14,780 per square metre, according to the Global Property Guide website. That compares with US$12,510 to US$22,923 per square metre in Manhattan.