＜HK Home＞Citi Expects HK Home Prices to Drop 10% in 2024; Sentiment to Only Improve When Actual Mortgage Rates Fall to 3%-3.5%

　　Ka Liu, Head of Investment Strategy and Portfolio Advisory at Citi, noted that year-to-date property prices in Hong Kong have fallen by about 3% due to high mortgage rates and the abundant supply of first-hand flats. Citi is now forecasting a 10% drop in prices for the whole year.

　　Although Citi expected the US Federal Reserve to cut interest rates three times this year, which is more aggressive than the market forecast, Liu believed Hong Kong banks may not follow suit. Even if the US cuts rates by 50 bps, Hong Kong's current mortgage rates will still be higher than residential rental yields, and investment demand will continue to be suppressed.

　　He predicted that market sentiment will not improve until the actual mortgage rates in Hong Kong fall to about 3% to 3.5%, and that a drop in interest pressure will directly accelerate the rate of inventory digestion.

　　AAStocks Financial News