Some of the world’s most expensive property prices are falling. Why?

Some of the world’s most expensive property prices are falling. Why?
FILE PHOTO: People wearing face masks walk past an advertisement board, amid the coronavirus disease (COVID-19) pandemic, in Hong Kong, China, March 25, 2022. REUTERS/Tyrone Siu/File Photo

Property prices are cooling down in Hong Kong, and it’s a trend that’s being seen in markets like Sydney, Shanghai and Singapore.

For Hong Kong, the city with the most expensive real estate in the world, this has been the case since September, with rising interest rates and the exodus of expats and locals. Since the market high in August, Centaline Property Agency says that prices have fallen 7.3%.

Banks like Goldman, UBS, Citigroup and Morgan Stanley expect it to continue to fall to varying extents, but JP Morgan is feeling a bit more bullish and confident, saying that the market is still supported by strong demand and relatively unaffected by rising interest rates.

Key comments:

“Home prices will remain under pressure at least in the near term,” said Rosanna Tang, head of research for Hong Kong and Greater Bay Area at Colliers International. “In addition to Covid-19, other market uncertainties including geopolitical tension and interest-rate risks are also delaying homebuyers’ decision-making.”

You drive the stories at TMS. DM us which headline you want us to explain, or email us.