Prices in Hong Kong, Sydney and Singapore are showing signs of weakness after hitting records

2022-07-24 0 By

Prices in Sydney and Hong Kong have started to fall, while in Singapore they barely rose in the last quarter as buyers fretted about rising interest rates and a slumping economy.In the past year, prices in Sydney have soared nearly 27 percent, while prices in Singapore have hit their highest levels in more than a decade.Sydney house prices are showing signs of weakness near record highs amid growing expectations that the central bank will soon start raising interest rates.With income growth lagging far behind house price growth, affordability has weighed on the housing market: between March 2020 and December 2021, wages rose 3.3 percent, while home values soared 22.6 percent.The median home value in Sydney is more than 17 times the median wage.Some of the region’s most expensive housing markets are cooling after last year’s breakneck growth.Residential prices in Hong Kong have been on a downward trend since August, with no sign of recovery in sight.Last year, the city’s housing market seemed unstoppable, with prices breaking records in August.Since then, values have fallen 7.3 percent, according to Centaline Property Agency LTD.Goldman Sachs group Inc. expects Hong Kong home prices to fall 20% by 2025 due to population outflows and rising interest rates.Hong Kong remains the least affordable place in the world in terms of housing affordability.”Governments in the region have been alarmed by rising asset prices since the global financial crisis, and the epidemic has also focused attention on the widening gap between rich and poor,”Victoria Garrett, Head of Asia-pacific residential at Knight Frank, said: “While the switch from a seller’s market will open up more opportunities, buyers are likely to become more selective and price sensitive.”Now watch the Edge Lab to keep up with the latest financial news from around the world.For more exciting content, come to the Edge Lab