As the rest of the world seeks to jump on to a more level playing field ushered in by China's WTO entry, Hong Kong is achingly aware that its privileged edge is on the line. Is it time to court special trade favours with Beijing?

Hong Kong's property market would be unlikely to see any direct benefits of a free trade deal. In theory, a free trade bloc would help gross domestic product and trade volume pick up, according to a Lehman Brothers analyst.

The hope would be that Hong Kong could sustain its economic growth and both it and China would be wealthier, said analyst Anthony Wu.

However, faster integration would cause a convergence of negative impact on property prices, Mr Wu said.

However, he did not believe the process of integration would be fast and that some customs or barriers would still exist.

Jones Lang LaSalle senior national director Lau Chun-kong said the impact of a free-trade zone would depend on detailed arrangements such as taxation measures.