S&P: HK property recovering

The Hong Kong property market recovered strongly in 2004, but with rising interest rates in the territory, the outlook for the next 12 months is uncertain, state media reported, citing Standard & Poor's ratings services. The luxury residential market has been the main beneficiary of the rebound, but with banks tightening their mortgage lending rates, this could reverse. Increased office rental rates and growing tourism and consumption suggest retail and office space will continue on a path to recovery, the report said.