Which overseas property markets will be the winners and losers if Fed raises US rates?
Comments by US Federal Reserve chairman Kevin Warsh at its annual economic policy symposium in Jackson Hole last month have reinforced expectations of an impending interest rate rise in the world’s largest economy, which would have significant impacts on assets and investors around the world. While the Fed kept its target rate in the range of 3.5 to 3.75 per cent at its meeting in July, Warsh’s…
The Federal Reserve's upcoming interest rate rise will have significant effects on global property markets. Hong Kong property agents anticipate their market will closely follow the Fed's moves due to the pegged currency, making it less attractive for mainland Chinese investors. In Australia, Canada, the UK, and New Zealand, variable rate mortgages make these markets more responsive to Fed rate changes.
Thailand, Malaysia, and Greece are seen as favorable options for international buyers looking for holiday homes or education opportunities. Singapore may also benefit from its commercial real estate market, with a stronger dollar potentially offsetting inflation. Japan, with its low interest rates and stable economy, remains an attractive option for investors.
Despite higher US interest rates, foreign buyers might find US property prices lower and more appealing, creating opportunities for cash-rich investors.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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