Home prices are projected to rise 3% in 2018 compared to 13% in 2017.
Bloomberg reports that Hong Kong’s red-hot housing market is finally starting to cool down as skyrocketing prices are slowly stabilising along with housing demand, according to Credit Suisse Group.
The brokerage projects home prices in the city will rise 3 percent this year, compared with 13 percent in 2017, as the risk of higher interest rates and increasing housing inventory grows.
"Overall demand and price growth have been slowing down since 2017," Leung wrote in a note dated Tuesday. Any increase in the prime rate will have "a wider impact as developers’ financings are typically benchmarked to the prime rates," she wrote.
Here’s more from Bloomberg:
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