A boom-and-bust cycle is going to happen in HK property market.

Hong Kong’s property values keep rising during the past decade. However, with the Chinese economy slowing down and the US dollar being stronger again, a booming Hong Kong property market is at risk.

A number of big banks in Hong Kong, including HSBC have lift rates on new mortgages in last week and it will cause a correction and discounting for housing market in 2019. Hong Kong has the classic symptoms, such as an overvalued housing market and high debt, which have caused many past financial crises. These symptoms will leave this city become vulnerable to an Fed hiking cycle.

The Hong Kong housing market looks massively overvalued and the property market sentiment is going to turn negative. Coming with the slowdown of the Chinese capital being channeled into residential market, investors are being more alert to signs of sliding in Hong Kong property market.

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