Research Briefing | Aug 18, 2022

Hong Kong’s weak housing market to only get a reprieve in 2023

Hong Kong’s housing market sentiment weakened during H1 2022, reflecting a resurgence of Covid infections in Q1 and a weak domestic economic outlook. House prices in the secondary market fell 2.8% in Q2 versus Q4 2021. And this housing market weakness may not be over yet.

What you will learn:

  • As an international trade and financial centre in Asia, changes in Hong Kong’s external environment have an
    outsized impact on its domestic economy, and hence on its housing market.
  • We expect residential property prices to fall by about 4% y/y in Q4 2022, mainly due to the gloomy economic outlook. Slow border reopening progress and challenges to the external environment have severely dampened local sentiment.
  • Higher mortgage rates will also play a role in deterring lower income households from buying property and weigh on residential property investment demand.

Back to Resource Hub

Related posts


Slowdown in 2023, except for Chinese cities

Growth across advanced Asia Pacific cities is slowing down in 2022's second half, and their full-year growth rates will trend downwards in 2023. In emerging Asian cities, we expect an uptick in growth in 2022, followed by a marked weakening in 2023.

Find Out More
Martin Place sign


Sean Langcake: Need to be ‘patient’ in waiting for interest rate rises to affect economy

BIS Oxford Economics’ Sean Langcake, Head of Macroeconomic Forecasting was interviewed by Ross Greenwood from Sky News. In this feature interview, they discuss the headline interest rate data and that it was quite positive but there are some signs that there is softness in more consumer durables and more discretionary spending components.

Find Out More


Joongang Ilbo: Don’t expect a dollar turn until 2023

Oxford Economics’ Javier Corominas, Director of Global Macro Strategy was interviewed by Joongang Ilbo, a leading financial paper in Korea. In this feature interview, they discussed the strength of the dollar, what could cause it to turn in 2023 and why China matters a lot for the Korean won.

Find Out More