Key Takeaways
- • Industry insiders say an expected 0.25 percentage point US Federal Reserve rate increase in December is unlikely to dampen Hong Kong family offices' appetite for European, US and Japanese property, according to South China Morning Post reporting.
- • Ken Peng, chief investment officer at Raffles Family Office, reports no signs of a large-scale sell-off in the US real estate market, with some local US markets experiencing supply shortages.
- • Peng expects the Fed's current tightening cycle to be relatively short, pointing to possible shifts in congressional control after the midterm elections and tighter fiscal policy by 2027.
Summary
An expected 0.25 percentage point increase in the US Federal Reserve's benchmark rate in December is unlikely to deter Hong Kong family offices from pursuing property investments in Europe, the United States and Japan, according to industry insiders cited by the South China Morning Post.
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, and that some local markets in the United States were even seeing supply shortages. These conditions suggest that rate-driven pressure has not yet translated into broad distress in property holdings.
Peng also offered a view on the trajectory of monetary policy. He said he believes the Federal Reserve's current rate-hiking cycle could be quite short. He linked this to the US midterm elections, after which control of the House of Representatives and Senate could shift, and suggested fiscal policy might tighten by 2027. In his view, this would slow US economic growth and ease inflationary pressures.
The source article frames the rate outlook as a factor that family offices are weighing against their long-term property allocations rather than as a reason to retreat from overseas real estate. Note that the available source is a brief interview-based piece, and the views presented are those of industry insiders rather than market-wide data.
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, and that some local markets in the United States were even seeing supply shortages. These conditions suggest that rate-driven pressure has not yet translated into broad distress in property holdings.
Peng also offered a view on the trajectory of monetary policy. He said he believes the Federal Reserve's current rate-hiking cycle could be quite short. He linked this to the US midterm elections, after which control of the House of Representatives and Senate could shift, and suggested fiscal policy might tighten by 2027. In his view, this would slow US economic growth and ease inflationary pressures.
The source article frames the rate outlook as a factor that family offices are weighing against their long-term property allocations rather than as a reason to retreat from overseas real estate. Note that the available source is a brief interview-based piece, and the views presented are those of industry insiders rather than market-wide data.
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