
Trade war weighs on Hong Kong property market as Chinese buyers grow cautious, analysts say
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.
Advertisement
'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.
A view of Kowloon. Photo: Eugene Lee
'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.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


South China Morning Post
an hour ago
- South China Morning Post
China-US agree to ‘done deal', Trump says, pending sign-off by President Xi
China and the US have agreed to 'a done deal' including tariff cuts, rare earth exports from China, as well as Chinese students going to colleges in the US, President Donald Trump said on Wednesday, pointing to a potential breakthrough aimed at cooling trade tensions that had been reignited by mutual accusations of deal violations. Advertisement 'Our deal with China is done, subject to final approval with President Xi and me,' Trump posted on his social media platform Truth Social, as the negotiating teams from the two countries concluded talks in London from the past two days. 'Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). 'We are getting a total of 55 per cent tariffs, China is getting 10 per cent. Relationship is excellent! Thank you for your attention to this matter!' Trump's latest post followed a rocky stretch in bilateral ties, marked by a fraying trust between the world's two largest economies. But a phone call between President Xi Jinping and US President Donald Trump last week helped fuel a sense of cautious optimism ahead of the London talks. Advertisement


RTHK
3 hours ago
- RTHK
Vice premier He calls for equal dialogue with US
Vice premier He calls for equal dialogue with US At the London trade talks are, from left, Jamieson Greer, Howard Lutnick, Scott Bessent, He Lifeng, Commerce Minister Wang Wentao, and Chinese International Trade Representative and Vice Minister of Commerce Li Chenggang. Photo: AFP The United States should resolve trade disputes with China through equal dialogue and mutually beneficial cooperation, Vice Premier He Lifeng said. China reiterates that the United States should work with China to honour their words with actions and demonstrate sincerity in keeping commitments and concrete efforts to implement consensus so as to jointly safeguard the hard-won outcomes of dialogue, He said. The vice premier made the remarks during the first meeting of the China-US economic and trade consultation mechanism held in London on Monday and Tuesday with the US delegation led by Treasury Secretary Scott Bessent and including Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. During the talks, the two sides held candid and in-depth talks and thoroughly exchanged views on economic and trade issues of mutual concern. The two sides reached a principled agreement on implementing the important consensus reached by the two heads of state during their phone call on June 5 and the framework of measures to consolidate the outcomes of the economic and trade talks in Geneva, and made new progress in addressing each other's economic and trade concerns. Calling the meeting an important consultation held under the guidance of the strategic consensus reached by the two heads of state on June 5, He said China's position on Sino-US economic and trade issues is clear and consistent. Noting that the essence of Sino-US economic and trade relations lies in mutual benefit and win-win cooperation, he said cooperation in the economic and trade field benefits both sides, while confrontation harms both. There are no winners in trade wars, he said, adding that China does not seek conflict but will not be intimidated by one. The vice premier urged the United States to resolve trade disputes with China through equal dialogue and mutually beneficial cooperation, adding that while China is sincere in pursuing economic and trade consultations, it also has its principles. Next, the two sides should, in accordance with the important consensus and requirements reached by the two heads of state during their phone call, make better use of the China-US economic and trade consultation mechanism and work to enhance their consensus, reduce misunderstandings and strengthen cooperation, He said. The two sides should maintain communication and consultation and promote the steady and sustained growth of Sino-US economic and trade relations so as to inject more certainty and stability into the world economy, He added. The US side said that the meeting had achieved positive outcomes and further stabilized bilateral economic and trade relations, adding that it would walk in the same direction as China in accordance with the requirements of the phone call between the two heads of state to jointly implement the consensus reached at this meeting. (Xinhua)


South China Morning Post
3 hours ago
- South China Morning Post
Musk regrets Trump criticisms, says some posts ‘went too far'
Elon Musk , the world's richest person and Donald Trump 's former adviser, said on Wednesday that he regretted some of his recent criticisms of the US president after the pair's public falling-out last week. 'I regret some of my posts about President @realDonaldTrump last week. They went too far,' Musk wrote on his social media platform X Musk's expression of regret came just days after Trump threatened the tech billionaire with 'serious consequences' if he sought to punish Republicans who voted for a controversial spending bill. Their blistering break-up – largely carried out on social media before a riveted public since Thursday last week – was ignited by Musk's harsh criticism of Trump's so-called 'big, beautiful' spending bill, which is currently before Congress. Some lawmakers who were against the bill had called on Musk – one of the Republican Party's biggest financial backers in last year's presidential election – to fund primary challenges against Republicans who voted for the legislation. 'He'll have to pay very serious consequences if he does that,' Trump, who also branded Musk 'disrespectful,' told NBC News on Saturday, without specifying what those consequences would be.