Property shocker: Tightening liquidity may push mortgage rates up

This may worsen the already weak real estate sentiment further, according to a Reuters report.

"If liquidity tightens in the Hong Kong dollar market further, that may push mortgage rates up," HSBC Asia-Pacific Chief Executive Peter Wong told reporters.

According to the Reuters report, Hong Kong's property market has already begun to show signs of slowing following a series of measures announced by the city's government to cool prices, including increasing the downpayment required for certain types of property.

View the full report here.