Hong Kong home prices could slide as much as 10 per cent over the next 17 months, UBS said, mainly because of anticipated higher mortgage rates.
And the US-China trade war threatens to weigh down prices even more.
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The UBS property team forecasts a drop of between 5 per cent and 10 per cent in home prices from now until the end of 2019, dented by the expected 50 basis points to 75 basis points increase in mortgage rates in the near future.
Citibank on Tuesday became the first major bank in the city to increase interest rates on home loans. Other banks may soon follow, ending 12 years of cheap borrowing.
