Property consultant Colliers International has claimed that 2011 will be a good year to invest in real estate in Hong Kong. The company dismissed fears that a residential property bubble is forming in the city, stating that government cooling measures appear to be working.
The comments come despite recent figures from the Hong Kong Land Registry revealing that transaction levels have risen by 21.5 per cent over the past 12 months.
However, speaking to Overseas Property Professional, Simon Lo, director of research and advisory [cap down] for Colliers in Hong Kong, said that the company had no immediate concerns about a bubble forming.
The expert added that demand in the market is being driven by a mixture of local end-users, long-term investors and buyers from mainland China.
"In our view, it is a good entry point in 2011 given the genuine rental support from a full range of end-users. In addition, both rental and capital values will be further fuelled by expectations of growing inflationary pressure in 2011," he added.