RESIDENTIAL PROPERTY | Staff Reporter, Singapore

Spike in morgage costs turns Hong Kong property shares toxic

The Hang Seng Properties Index plunged 2.6%.

According to Bloomberg, Hong Kong’s property developers are fast falling out of favor among investors as surging mortgage costs and punitive taxes threaten to choke home sales.

A gauge of real estate companies traded on the city’s stock market has tumbled 13 percent this quarter, with developers accounting for half of the biggest losers on the benchmark Hang Seng Index, which has fallen 5.3 percent. During the three-month period, a key interbank rate -- known as Hibor -- has doubled to an eight-year high, while the government also slapped a 15 percent levy on residential purchases.

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