Hongkongers relish picking up overseas properties on the cheap as currencies slump amid market stampede

Hongkongers are relishing the prospect of picking up global properties on the cheap, as a global market stampede crushed major currencies and emergency rate cuts flattened borrowing costs.

The Hong Kong currency is trading at the stronger end of its band through the market carnage, courtesy of its decades-old peg to the US dollar. It has appreciated by between 4.7 per cent and 15.5 per cent so far this year against top major and regional currencies, including the British pound, Canadian dollar, Australian dollar, Euro and Singapore dollar, according to Bloomberg Market data.

The situation is putting deep-pocketed investors on alert, just as many are looking to emigrate from the city after experiencing months of social unrest in 2019. Funding costs have declined as the US Federal Reserve led global emergency rate cuts to counter the economic impact of the coronavirus outbreak.

“In almost every market where Hong Kong buyers are significantly active, they can buy property for much cheaper now than just a couple of weeks ago,” said Georg Chmiel, executive chairman of Juwai IQI, an international property portal. “The economic fallout is pushing other currencies down as investors fled to the safety of the US dollar.”

Amid the market turmoil, the British pound plunged to a 35-year low of HK$8.91, while the Australian dollar tumbled to HK$4.3, the weakest since 2002, making homes ever more affordable.

Since the Fed made its first surprise cut on March 3, countries including South Korea, the UK and Australia have also lowered their benchmark rates to support their economies.