The Federal Reserve announced the latest results of interest rate negotiations, keeping the federal funds rate between 0% and 0.25%, in line with market expectations, but speeding up the pace of reducing the size of bond purchases, and is expected to raise interest rates next year.

Bu Shaoming, chief executive of Wachovia property and Housing, said that the latest US interest rate hike cycle began at the end of 2015, with a total of nine interest rate increases, totaling 2.25 per cent, during which Hong Kong's prime rate only increased once, an increase of 0.125 per cent, and the rate increase was much lower than that of the United States. it can be seen that Hong Kong has not followed suit in raising interest rates; even if the United States has cut interest rates again and again since then, Hong Kong has only lowered by 0.125 per cent. Therefore, I believe that even if the United States does raise interest rates next year, Hong Kong may not immediately follow suit.

Bu Shaoming pointed out that the change in interest rates is only one of the factors affecting the property market, and in the past, interest rate increases in the United States did not necessarily lead to a downward adjustment in property prices in Hong Kong. Take the last interest rate hike cycle in the United States at the end of 2015 as an example, property prices in Hong Kong rose by about 20% during that period. From this we can see that even in the face of an increase in interest rates in the United States, property prices in Hong Kong have risen instead of falling.

He is of the view that with the opportunity for full customs clearance between China and Hong Kong next year, it will bring positive support to the Hong Kong economy, coupled with the abundant capital in the local market, strong rigid demand for home ownership, high deposits and continued economic improvement, all support the property market.