CAD, HK Real Estate

click chart for better view

if you look at this chart, there is a very round bottom from mid 2009 which is now over four years. this is telling you the only direction is up ie CAD is down in the next two years hitting at least 1.18.

this event might have part impact on HK real estate as well. when i have more time, i will look into AUD/NZD to see whether the trends agree. if they do, then HK real estate will correct at least as much ie the percentage from 1.05 to 1.18 almost 13 percent or more.

the reason is when USD gets that strong, HKD will too, thus limiting any growth prospect or there might even be a chance of recession, then having an impact on employment thus squeezing the purchasing power to acquire real estate. as then, the landlords themselves could have liquidity problems and become more willing to sell thus depressing prices even more.