Hong Kong Property Market Braces for Interest Rate Hikes

Hong Kong's property market is bracing for the impact of rising interest rates, but analysts say it won't be as severe as during the last rate cycle in 2022-2023.

The US Federal Reserve raised its benchmark rate earlier this month, and major Hong Kong banks are expected to follow suit if the Fed tightens further later this year.

Morgan Stanley notes that renewed Fed tightening combined with weaker demand on the Chinese mainland has revived memories of 2022-2023, when property prices in Hong Kong plunged by double-digit levels.