Hong Kong property prices buoyed by US Federal Reserve
Despite analysts forecasting a drop in Hong Kong property prices, the market looks set to stay high, on the back of the US Federal Reserve (Fed) interest rate stance. The Fed’s resistance to raising interest rates has extended the long period of low mortgage rates in Hong Kong, given the HKD peg to the USD, which has supported high property prices. Until the Fed changes its stance, Hong Kong property prices may continue their upward trend.  

Federal Reserve Chair Janet Yellen has proven to be an unworthy successor of Paul Volcker, who acted as a proper monetary host by kicking the guests out of a party that had gone on too long. Photo: AP