Rising Rates, Price Slump Deal Double Blow To Hong Kong Homeowners
>>> Shared from the Original Post at INQUIRER.net
HONG KONG – 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-percent 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 percent, 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 p…
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