The impact of China’s new security laws on Hong Kong SAR’s real estate outlook
China’s decision to draft new security laws for Hong Kong SAR, and the US government’s decision to revoke trade and visa privileges for the territory in response, raise questions about Hong Kong’s future as a commercial centre. The view that Hong Kong’s position will weaken looks overcautious. In the near term, the developments should have little effect on the city’s property markets. In the long run, we expect falling rents and greater GBA integration to support overall leasing demand in Hong Kong. At the same time, economic recovery, closer integration with China and the likely continuation of Hong Kong’s US dollar peg should improve perceptions of economic and political stability, supporting investment in the territory.
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