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.
“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.”
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