Property market most at risk as mortgage rates surge: report
The floating interest rates are affecting the property market.
The property market will be the most vulnerable to tightening of monetary measures as the buyers in the housing market may experience impacts from a floating interest rate, Bloomberg reported.
Over 97% of mortgages in Hong Kong are linked to Hong Kong Interbank Offered Rate, as per July data of the Hong Kong Monetary Authority. A Bloomberg report indicated it is the “highest in the world.”
READ MORE: Residential transaction volume to drop 49% YoY in Q1 2022
The financial centre was forced to increase rates five times in 2022 due to impacts of the US Federal Reserve.
This would make the housing market “least affordable” in nearly 25 years, Bloomberg Intelligence analysts said.
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