花之都

HK mortgage rates are set to rise, housing affordability may be the worst in 24 years

Industry research shows that if the mortgage rate rises to 3.5%, Hong Kong's housing affordability ratio, that is, the proportion of mortgage contributions to household income, may reach 60.1%, the highest level since 1998.
Analysts Patrick Wong and Francis Chan wrote in their report on Thursday (22nd) that unless household income increases significantly or house prices fall further, the high burden rate may deter buyers.
To keep this ratio at about 56%, house prices need to be at least 10% lower than the current level.
Earlier, Yu Weiwen, chairman of the Hong Kong Monetary Authority, told reporters on Thursday that as the Federal Reserve continued to raise interest rates significantly, Hong Kong's banking industry was "likely" to raise deposit and loan rates before the end of the year.
This is the first time this year that the HKMA said that the banking industry may raise interest rates.
The Monetary Authority raised the base interest rate by 75 basis points to 3.5% on Thursday, in line with the increase of the Federal Reserve.
In August, HSBC Holdings and Standard Chartered Bank Group raised the upper limit of mortgage loan interest rate linked to Hong Kong interbank offered rate by 25 basis points.