The US has trimmed its interest rates by two percentage points so far in 2008, followed by an accumulated reduction of 1.5 percentage points in Hong Kong. A further 0.5 percentage point reduction is widely predicted for the US at the end of next month. Today, mortgage rates in Hong Kong have fallen to 2.5% already. With the drastic decline of interest rates and strong inflationary pressure, real mortgage rates are about 4% short of inflation, aggravating the effect of negative interest rates and making it even worse than the plight of early 1990s. An increasing number of investors would find that the spending power of their personal savings is being eroded gradually and that it makes sense to return to the market to snap up properties for longer term investment and wealth protection. With landlords racing to increase their rentals further, an investor buying property for lease can generate more than enough rental income to cover their mortgage instalment every month. It is no surprise that more capital will turn to the property sector.