Hong Kong home prices likely to drop 6% in H2 as rate hikes dampens homebuyers’ sentiments – Citigroup
DATA VIEWS & ANALYSIS
Hong Kong home prices likely to drop 6% in H2 as rate hikes dampens homebuyers’ sentiments – Citigroup
DATA VIEWS & ANALYSIS

Hong Kong home prices likely to drop 6% in H2 as rate hikes dampens homebuyers’ sentiments – Citigroup

 

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The US Federal Reserve is expected to hike the interest rates by 25 bps in the July and September policy meetings, respectively, mainly due to the stronger US economic data and the three-month HIBOR is expected to climb to 5.5% by the end of this year, with the HKD prime rate potentially following suit to rise by 25 bps, estimated Citigroup.

There is a 6% downside room for Hong Kong home prices in the second half of 2023 and property prices are expected to remain flattish throughout the whole year, as the rate-hike cycle dampened the sentiment of potential homebuyers, it. said.