Savvy Hong Kong property investors warned to be aware of volatile currency swings
Case study underlined how US dollar appreciated 21 per cent from June 2014 to January 2016, making it more expensive for international buyers to buy in the US
Savvy Hong Kong property investors intending to buy overseas property may need to focus on the volatile currency market more than any other factor, as even a small movement in the sector could affect returns and the price of luxury properties in major cities, according to a report.
The Global Currency Monitor Report, released by international property consultants Knight Frank, suggests that currency market movements can have a significant impact on the returns provided by an overseas asset, and on the flow of international capital into property markets.
The annual report assesses the impact of currency movements for international investors buying luxury residential properties around the world.
Property agents say Hong Kong investors need to pay heed to the report as London, New York, Sydney, Melbourne and Auckland have all been affected by currency fluctuations in the value of the pound and the respective dollars of the United States, Australia and New Zealand.
Nicholas Holt, Asia-Pacific head of research at Knight Frank, says that currency will continue to be a driving factor for property purchaser patterns and property asset performance.
