Fed rate hike could burst HK property bubble

Hong Kong

BUOYED by record-low borrowing costs, a Hong Kong housing boom has seen prices more than double in six years, making it one of the world's most expensive property markets, but analysts warn a US interest rate hike could send valuations plunging.

The expected hike by the Federal Reserve has also renewed debate on whether Hong Kong should maintain a decades-old peg with the US dollar, as its ties with China grow ever closer.