Business News Asia
Home prices in Hong Kong are likely to fall by 10% in the second half of 2022 after HSBC and Standard Chartered Bank (Stanchard ) raised mortgage rates for new homebuyers.
HSBC and Stanchard have raised their mortgage rates by 0.25% for the first time, which could cause home prices to fall by 5-10% in the second half of the year.
The Hong Kong property market is suffering from the four interest rate hikes by the Hong Kong Central Bank this year.
According to Centaline, home prices in Hong Kong have now fallen by more than 4% after Hong Kong residents relocated amid the tense political situation and strict quarantine measures.
Hong Kong’s central bank has already raised interest rates four times this year. This included a 0.75% rate hike in June, following the lead of the U.S. Federal Reserve (Fed).
In the past, the Bank of Hong Kong has often pursued a monetary policy consistent with that of the Fed, as the Hong Kong dollar is pegged to the U.S. dollar.