This is no time to bet against Hong Kong property
Hong Kong’s banks are finally raising mortgage rates. This won’t stem price gains in the world’s most expensive city for real estate.
Already up 14 per cent this year, Hong Kong’s home prices now overshadow those of New York and London relative to incomes.
A key reason behind the unstoppable gains: The big banks, flush with liquidity, have held off passing on US Federal Reserve rate rises, even though keeping the currency peg intact means the city’s de facto central bank has to mirror the US.
That changed on Monday. The triumvirate of HSBC Bank, BOC Hong Kong (a unit of mainland behemoth Bank of China Ltd), and Standard Chartered will lift home loan rates to the highest levels in years.