SQE The estate agency trade in Hong Kong question: factors that have affected Hong Kong’s property market

EAA SQEThe estate agency trade in Hong Kong

Which of the following statements about factors that have affected Hong Kong’s property market are correct? (i) Quantitative easing in the US after the 2008 financial crisis is an example of an internal factor. (ii) Stamp duty measures introduced by the HKSAR Government to cool demand are internal factors. (iii) The SARS outbreak in 2003 caused an economic downturn and a substantial fall in property prices. (iv) The 1997–98 financial crisis led to rapid growth in the number of small agency firms.

A (i), (ii) and (iii) only
B (ii) and (iii) only
C (iii) and (iv) only
D (ii), (iii) and (iv) only

Show the answer and explanation

Answer: B. (ii) and (iii) only

Answer: (ii) and (iii) only. (i) False. US quantitative easing is an external factor: it brought hot money into global markets, including Hong Kong property. (ii) True. Government housing policy and property market measures, such as stamp duties, are internal factors. (iii) True. SARS in 2003 caused an economic downturn and property prices fell substantially. (iv) False. The 1997–98 crisis led to consolidation of the trade and the closure of less efficient firms. Rule: external factors include world economic and political conditions and overseas monetary policy; internal factors include local economic cycles, housing policy and market measures. Source: EAA, A Study Guide to Estate Agency Law and Practice, Part 1, paras 1 and 7; as at Oct 2026

Common mistake

Candidates label any factor that affects Hong Kong as internal, even when it originates overseas.

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An original question written to the published SQE syllabus. Figures in the explanation carry their effective dates; check them against the current law before relying on them. Independent exam practice. Not affiliated with or endorsed by the Estate Agents Authority (EAA) or the examination administrator.