High borrowing costs aren’t going away anytime soon as many countries face the challenge of reining in runaway inflation, according to central bankers attending a conference organised by BIS and the Hong Kong Monetary Authority.

Deepening debt, elevated rates, geopolitical tensions and a slowing Chinese economy were all cited in the Monetary Authority of Singapore’s annual Financial Stability Review.

Hong Kong and mainland China-based buyers are snapping up residential units in Australia despite elevated interest rates and surging home prices Down Under, according to agents.

The multifamily property segment – typically buildings or blocks of buildings owned by institutional investors and leased out as flats – is tipped to escape a property rout in mainland China as supply and demand increase, particularly in Shanghai, according to JLL.

The Swiss investment bank expects home prices to decline by 10 per cent in 2024 as high interest rates dent demand and an abundance of housing stock boosts supply.

The amount fell by more than a fifth from the same period a year ago to US$21.3 billion, the lowest figure since the second quarter of 2010, according to a report by property consultancy JLL.

The property magnate and Chinese Estates founder says high interest rates are forcing businesspeople to recalculate their investments and potential returns. ‘It’s better to hold on to the money now.’

It has been nearly four months since the US Federal Reserve’s last interest rate hike – the 11th since early 2022 – but the impact still lingers in China’s markets, and an outflow of capital has persisted while the yuan depreciates.

The latest decision comes as a much-needed relief for Hong Kong’s businesses and mortgage borrowers. Hong Kong stocks jump in reaction, with most lenders logging big gains.

HSBC missed third-quarter profit estimates by a wide margin because of higher bad-debt provisions related to mainland China’s real estate sector and charges associated with its hedging strategy.

Singapore’s efforts to cool rising prices are ‘on track’, its outgoing central bank chief says, even as Indonesia and the Philippines have made surprise rate increases to prop up their currencies and stem inflationary pressures.

Hong Kong’s lived-in home prices fell by nearly 1.75 per cent in September to their lowest since April 2017, as elevated interest rates have dampened sentiment and kept buyers on the sidelines.

Standard Chartered reported worse-than-expected earnings for the third quarter because of high impairment charges related to exposure to China’s property sector.

Leaders from the world of finance and business convened in Riyadh issued a warning on Tuesday about the many perils the world currently faces, including geopolitical conflicts, economic uncertainties, high inflation and climate issues.

We look at the impact of the policy and monetary moves since 2009 to cool home prices. Now, stakeholders want the government to roll these back. But will that have the desired effect?

Investment in Hong Kong commercial property this year is likely to fall 65 per cent year on year to HK$26 billion (US$3.33 billion), a 15-year low, as a slow economic recovery in the city and mainland China as well as elevated interest rates weigh on sentiment, Colliers says.

However, prices are not likely to see a sharp upswing because of high interest rates, according to luxury property agency’s founder Victoria Allan.