US interest rate hike could hit Hong Kong property market, says Morgan Stanley
Fears have been raised regarding the impact a potential US interest rate increase could have on the Hong Kong property market after house prices surged by 360% over the last year. Leading up to the potential announcement of the rate hike, Morgan Stanley has predicted price drops of 5% to 10% in Hong Kong; however, other real estate experts believe such substantial drops would be &lsquo;the worst case scenario&rsquo;. Factors such as slowing economic growth and price inflation are also believed to contribute to price falls.
The iconic view of Hong Kong's skyline as property agents brace for the possible decision by the US Federal Reserve on raising interest rates for the first time in a decade. Photo: AFP