By: Mr Simon Smith, Head of Research & Consultancy Savills Hong Kong

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Simon heads Savills Research & Consultancy with responsibility for regional research services, covering the property markets of Greater China and the Asia-Pacific region. He has over 20 years’ experience of Asian real estate research and consultancy and is based in Hong Kong. As Head of Research, Simon has developed financial appraisal models and benchmark indices as well as a range of publications suited to the needs of investors, developers, landlords and occupiers.

REMEMBERING 1997 – IS ANOTHER PROPERTY CRASH POSSIBLE TODAY?

Hong Kong recently marked the 20th Anniversary of the 1997 Handover of the territory from Britain to China and thoughts also turned to the Asian Financial Crisis which unfolded in the same year.

What began in Thailand with the collapse of the Thai Baht soon spread to elsewhere in the region, including Hong Kong. A speculative attack on the Hong Kong Dollar peg resulted in higher overnight interest rates and a falling stock market. It was ultimately a war which the government won but other factors compounded uncertainty in the property markets including tighter lending conditions, higher interest rates and a pledge by the new administration to dramatically increase the supply of residential apartments. At a time when prices were at record highs, affordability at record lows and speculation was rife, greed quickly turned to fear and office, residential and retail prices fell 71%, 60% and 52% respectively from 1997 to 2003.

For more information, click 08092017 – Remembering 1997 – Is another property crash possible today – EN and 08092017 – Nhớ về năm 1997 – Liệu kịch bản khủng hoảng BĐS có lặp lại hôm nay – VN


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