Hong Kong Housing Market Faces Headwinds Amid Falling Prices, Rising Rates, But Financial Risks Look Manageable
-
Hong Kong's housing market has faced repeated shocks since 2018, causing prices to fall over 20% from their 2021 peak.
-
Mortgage rates have surged due to Fed tightening, paralyzing sales and worsening affordability. Prices expected to fall further.
-
But risks to financial stability look manageable given prudent loan-to-value ratios and income levels of mortgage holders.
-
New stamp duty cuts for some buyers differentiate Hong Kong from Singapore's property tightening.
-
Supply-demand imbalance remains the crux of Hong Kong's housing woes despite some progress on increasing supply.