Prices in the world’s most expensive housing market are set to fall to the lowest since 2017 as surging borrowing costs deter buyers. Mortgage rates may jump to the highest since 2008, in tandem with US rate hikes, BI analysts Patrick Wong and Francis Chan wrote in a note on Friday. But it’s the rise in interest rates that has most changed the dynamic between buyers and sellers, according to property agents. Goldman Sachs Group Inc. said in March that home prices in Hong Kong will drop 20 percent by 2025. In addition, home owners are more able to withstand higher rates following stress tests that were introduced in the 2010s.

Source: The Standard September 16, 2022 18:53 UTC