Hong Kong Homes Become Least Affordable in 24 years
The percentage of monthly household income used for mortgage repayments in Hong Kong could reach 60.1%, the least affordable level since 1998, if mortgage rates rise to 3.5%. That could deter buyers unless household incomes surge or home prices decline further. For the ratio to remain at about 56%, current home prices need to drop by at least 10%. Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue said that banks would ‘very likely’ raise their deposit and lending rates by the end of the year as US interest rates continue to spike. HKMA lifted its base rate by 75 basis points to 3.5%, hours after the Fed’s move of the same magnitude. In August, HSBC Holdings Plc and Standard Chartered Plc increased the cap on HIBOR-linked mortgages by 25 basis points.
Tags : monthly household income mortgage Hong Kong affordable buyers household income Hong Kong Monetary Authority Chief Executive Eddie Yue