The escalating trade war between China and the US is dampening the sentiment of mainland Chinese homebuyers in Hong Kong, as macroeconomic uncertainties and currency depreciation risks weigh on the housing market, according to experts.
“Hong Kong’s property market very much depends on the economy, which will inevitably be affected by the tariffs and the trade war,” said Joseph Tsang, chairman of JLL Hong Kong, adding that the current economic direction was unfavourable for the outlook on home prices.
China announced on Friday that it was raising tariffs on all US imports to 125 per cent from 84 per cent, in response to US President Donald Trump’s move on Wednesday increasing levies on Chinese imports to 145 per cent.
Amid turmoil in global markets, the offshore yuan fell to a record low of 7.4290 per US dollar in New York trading on Tuesday, after the People’s Bank of China set its midpoint rate at its weakest level since 2023. The move sparked speculation that Beijing might allow further depreciation of the currency to mitigate the impact of US tariffs.
“The depreciation of the yuan would negatively impact housing prices in Hong Kong,” said Chau Kwong-wing, chair professor and director of the Ronald Coase Centre for Property Rights Research at the University of Hong Kong.
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