[ET Net News Agency, 24 April 2018] Goldman Sachs said the average Hong Kong secondary
residential price is up 9% 2018 year-to-date on still low mortgage rates amid a buoyant
local economy and lack of new demand-side/supply-side measures.
However, 1Q transaction volume shrank by 21% qoq and 27% yoy.
HKD liquidity has been under the spotlight in recent weeks as the HKMA started to
intervene in the FX market. The research house expects a 130bps average interest rate
(mortgage cost) increase versus 2H 2017 levels in the next three years, which is 50bps
faster than the previous forecasts.
Goldman believes higher rates would be negative to residential buying sentiment, and
subsequently could present risks to the overall market's investment property valuations
and add pressure to financing costs.
Given the potential for a 130bps mortgage rate hike, Goldman's sensitivity analysis
suggests that a 15% price adjustment would be required to restore the effective cash flow
to breakeven level. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00083 SINO LAND
Nominal 
7.840 -0.010 (-0.127%) Others
24/04/2018 15:58
[I-bank focus]HK mortgage cost seen up 130bps in 3 years
| Remark: | Real time quote last updated: 18/04/2024 11:07 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |