Hong Kong’s Rate Hikes to Drive Down Costly Housing Prices
- HKMA expected to raise benchmark rate in line with Fed
- Interbank rates, which are tied to mortgages, set to rise
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Rising interest rates in Hong Kong are pushing up costs for homeowners and threatening to drive down prices in the world’s most expensive housing market.
With the Federal Reserve hiking rates aggressively and Hong Kong forced to follow, consumers are being saddled with higher debt, another drag on an economy that’s struggling to rebound. Analysts at Citigroup Inc. and Moody’s Analytics expect demand for home loans to fall, cooling property prices further.