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Hong Kong's Red-Hot Home Market Set to Defy Rate Hikes

  • Warnings from HKMA, IMF have been falling on deaf ears
  • Inflows of liquidity are capping local interest rates
Views Of Property As Hong Kong's Home Prices Rose 9% This Year

Photographer: Justin Chin/Bloomberg

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Why are official warnings of the threat that rising interest rates pose to Hong Kong’s red-hot housing market falling on deaf ears?

The Hong Kong Monetary Authority and the International Monetary Fund have both highlighted the risks. But three Federal Reserve rate increases forecast for this year won’t stop prices from climbing, according to analysts at firms including JPMorgan Chase & Co. and Union Bancaire Privee. Prices already jumped 22 percent as the Fed raised rates five times from December 2015.