Hong Kong’s real-estate correction has no winners

Sun Hung Kai Properties

25/10/2022 05:24

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Thomas Shum
       HONG KONG, Oct 25 (Reuters Breakingviews) - Property
prices are falling due to rising interest rates, a brain drain
and a weak local economy. That sounds like good news for the
world’s most unaffordable housing market. But first-time buyers
and homeowners face rising mortgage costs, adding pressure for
developers, too.
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    CONTEXT NEWS
    Secondary market home prices in Hong Kong have dropped as
much as 8% since the start of the year and are on track to reach
a five-year low.
    In a report dated Oct. 4, analysts at Goldman Sachs revised
their residential property outlook, predicting a 30% plunge by
the end of 2023 from last year’s levels.
 (Editing by Robyn Mak and Katrina Hamlin)
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