Hong Kong home prices skyrocket


HONG KONG: Hong Kong housing is at risk of becoming the least affordable in 24 years, as rate hikes by the US Federal Reserve drive up borrowing costs in the Asian financial hub.

The percentage of monthly household income used for mortgage repayments in Hong Kong could reach 60.1%, the least affordable level since 1998, if mortgage rates rise to 3.5%, according to Bloomberg Intelligence.

That could deter buyers unless household incomes surge or home prices decline further, Bloomberg analysts Patrick Wong and Francis Chan wrote in a note.

For the ratio to remain at about 56%, current home prices need to drop by at least 10%. — Bloomberg

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Hong Kong , housing , rate hikes , Federal Reserve

   

Next In Business News

Ranhill secures engineering design contract for solar powered offshore platform
SC issues new guidelines, technical notes on investment advisory
Sapura Energy returns to black in 3Q, posts net profit of RM10.18mil
Mohammed Che Hussein to retire as Gamuda chairman
Mitrajaya wins RM265.87mil construction contract
Benjamin Teo, now substantial shareholder of Paramount
Ringgit ends slightly lower vs greenback ahead of FOMC meeting
Propel Global to acquire 51% stake in Best Wide Engineering for RM7.82mil
Bermaz Auto reports more than two-fold profit jump in 2Q
Sime Darby Motors appointed exclusive BYD EV distributor

Others Also Read