What to expect? Higher prices driven by higher inflation, or lower prices driven by higher interest rates?

[cheepo]

What to expect? Higher prices driven by higher inflation, or lower prices driven by higher interest rates?

The title says it all. I think there are two forces at work here, higher inflation driving prices of property higher, and higher interest rates driving prices down. It seems to me that most people have little mortgages (40-50% or less of current prices), so higher interest rates won't bankrupt them.

Does it mean that prices will go up further, when higher inflation and higher mortgage rates will come (suppose they come at the same time, as would be logical)?

What does you think?

[walkup]

You know, confronted by the extra buyer's tax of 15% plus an additional 4% in stamp duty, this seems to dwarf any anticipated rise in interest rates.

[walkup]

So far just dead in the water:
H.K. Weekend Secondary Home Deals Drop on New Curbs
http://www.bloomberg.com/news/2013-0...new-curbs.html

[cheepo]

Yes, but the prices are still going up. +0.25 over HK 3 weeks ago, +1% in the NT, where I live: http://hk.centadata.com/cci/cci_e.htm

[walkup]

Yes, but the prices are still going up. +0.25 over HK 3 weeks ago, +1% in the NT, where I live: http://hk.centadata.com/cci/cci_e.htm

Yes, but would those figures include contracts entered into after the most recent stamp duty hike?

[Robogar]

We bought our home exactly 10 months ago. and it has gone up by 20%. We were considering now as the time to sell, but after all the cost calculations, what stopped us from doing so? The 5% SSD... in no way are we willing to give up 250k to the government for nothing.

Damn you HK Gvt, your imposed measures has affected me 1st hand!

[wayland]

We bought our home exactly 10 months ago. and it has gone up by 20%. We were considering now as the time to sell, but after all the cost calculations, what stopped us from doing so? The 5% SSD... in no way are we willing to give up 250k to the government for nothing.

Damn you HK Gvt, your imposed measures has affected me 1st hand!

Why aren't you simply raising your asking price by 250k like all other sellers?

[walkup]

Original Post Deleted

Those who are on the sidelines will always feel a little left out and the current government measures do not help. Just hope and pray for that drop, not that a 20% drop will do you much good as the added taxes wipe out the wasted wait.