An expected 0.25 percentage point rate increase by the US Federal Reserve in December is unlikely to dampen Hong Kong family offices’ interest in European, US and Japanese property investments, according to industry insiders.
Ken Peng, chief investment officer at Raffles Family Office, said there were currently no signs of a large-scale sell-off in the US real estate market, with some local markets in the US even seeing supply shortages.
“I believe the Federal Reserve’s current rate-hiking cycle could be quite short,” Peng said. “Following the midterm elections, control of the House of Representatives and Senate could shift. Fiscal policy might tighten by 2027. This would slow US economic growth and ease inflationary pressures.”