The strength of the Chinese economy has now reflected in impressive house price rises in Hong Kong. According to the latest Knight Frank Global House Price Index Hong Kong the country with the highest growth was Hong Kong with prices rising by nearly 30%.Prices in Hong Kong and Mainland China increased by over 25%, driven upwards by a massive injection of liquidity into the economy by the Chinese government s fiscal stimulus package.
Meanwhile in the Middle East Dubai saw huge house price falls of some 42%. This should present good opportunities for those speculating with international real estate. However concerns for over supply and whether Dubai real estate prices has yet reached the bottom may deter investors.
Can we learn from what is happening in these regions , it seems government intervention is the key to strengthening the economy and the Chinese have got it right?
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If government intervention is the key we should be in good shape with all the programs floating around these days.
Mt friends that travel to Dubai tell me that theres a big problem out there with people leaving their cars at the airport, with keys in them. Something about a financial meltdown & it being illegal to default on debt...? But that's the random funfact that flashes through my mind when I think about Dubai.
A tale of two economies; one on the rise the other in decline. Dubai was flying so high and it seems to be in very bad shape.
Sounds very familiar from two different eras from our own economy. . .