The property market in Hong Kong is known to be among the most expensive in the world, with prices continuing to soar over the years despite various cooling measures by the authorities. It is also seen to have among the world’s worst housing bubble risks. The authorities have imposed higher stamp duties on foreign buyers and restrictions on lending, among other measures in attempts to keep property prices under control. Reports say that property prices in the city have risen some 14% just this year.
However, experts are saying that things may change next year, in line with increasing interest rates in the US. A Bloomberg report recently quoted Nomura International (HK) Ltd’s head of Hong Kong property research, Joyce Kwock, as saying that its residential property prices will fall 13% in 2019. She says this will be due to significantly higher mortgage rates. Last month, Hong Kong saw the biggest increase in mortgage rates in five years.