Hong Kong home owners may want to avoid looking at the stock market. Or the currency. Or money market rates.
An index of developer stocks in the city plunged 34 percent from its 2015 high through Thursday, while the Hong Kong dollar is trading near its weakest since August 2007 on growing bets against the currency peg. The interbank rate jumped to a more than six-year high, increasing mortgage payments for a majority of property owners who bought in recent years. That’s making declines of almost 9 percent for home prices from their September record look tame to CLSA Ltd., which predicted this month that values would drop 8 percent in the first quarter.
Record-low borrowing costs helped home prices to more than quadruple in the city since their 2003 lows, making Hong Kong the world’s most expensive property market.