Hong Kong Home Prices Could Fall 10% After HSBC, StanChart Hike Rates

Hong Kong’s home prices could fall as much as 10% in the second half after two major banks raised mortgage rates for new homebuyers to the highest since 2008, according to Bloomberg Intelligence.

HSBC Holdings Plc and Standard Chartered Plc are raising the cap on Hong Kong residential mortgage rates by 25 basis points for the first time this year. As a result, home prices could fall 5 to 10% in the second half, putting buyers’ purchasing power to the test, BI analysts Patrick Wong and Francis Chan estimated.

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