Abstract
Hong Kong became Southeast Asia's dominant economic center because of its favorable location, excellent harbor, plentiful labor supply, and the sustaining economic climate provided by the UK government's vigorous promotion of a free enterprise system. In the face of the return of the colony to control by the Peoples' Republic of China in 1997, many question whether Hong Kong can continue to be a major capitalist economic center under Chinese Communist rule. Hong Kong is experiencing a serious emmigration problem, raising doubts as to whether enough skilled workers will remain after the Chinese takeover. Uncertainty about the future is reflected in economic markets and the real property market. Hong Kong's future is largely dependent on what happens in China. Even if the Chinese government tries to ensure Hong Kong's continued success, it has no experience in managing a capitalist system. While the economy may remain relatively stable, the outlook for the property market is bleak.