Rising rates, price slump deal double blow to HK homeowners



ORIGINAL POST
Posted by Ed 12 days ago

HONG KONG, Sept 22 (Reuters) - When Stephanie Cheung bought a small, two-bedroom apartment for HK$7.7 million ($981,041) as an investment in April 2021, she booked a 6% gain by the summer as Hong Kong's property market boomed to historical highs.

The price surge was driven in part by optimism that Hong Kong's borders would reopen after some of the world's most stringent COVID-19 measures over the past two-and-a half years. 

Today, none of that has materialized. 

The price of Cheung's 450 square foot flat has dropped 6%, and the rental income of HK$16,300 is no longer enough to cover mortgage repayments after monthly interest increased by HK$2,400 a few months ago. 

"I made the purchase hoping to reserve capital, but now I just wanted to use the shortest time and the smallest loss to sell this apartment," said Cheung, 40, who lives in a bigger rented apartment with her family.

 
https://www.reuters.com/world/asia-pacific/rising-rates-price-slump-deal-double-blow-hong-kong-homeowners-2022-09-22/

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