HONG KONG, Dec. 8-- Hong Kong's ranking as a real estate market is expected to lag behind the rest of Asia in 2015, according to a report jointly issued by PwC and the Urban Land Institute on Monday.

Investors will remain cautious toward Hong Kong's property market next year in light of an impending interest rate hike, the mainland's slowing economy and property cooling measures adopted by the government last year. Hong Kong ranked 21st both in terms of property investment and development prospects, according to the Emerging Trends in Real Estate Asia Pacific 2015 report.

"Notwithstanding their lower ranking, Hong Kong's markets have enjoyed a remarkable resurgence in the second half of 2014," said KK So, PwC's Asia Pacific Real Estate Tax Leader, "However, some investors are cautious about the outlook of the markets, as they see prices softening, driven largely by the impending rises in interest rates, and there is always the concern that the government may intervene further."

The report said real estate markets throughout Asia are expected to remain resilient despite weakening economic fundamentals in 2015, as capital continues to flow into the industry from a variety of investment sources.

Japan remains a favored country for real estate activity, as Tokyo and Osaka ranked first and third in terms of investment and development prospects for next year. Shanghai and Beijing ranked sixth and 10th, respectively, according to the report.

The Urban Land Institute is a non-profit research and education organization supported by its members. The report is based on the opinion of 385 internationally renowned real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.