Liquidity is pouring into Hong Kong. The Special Administration Region’s monetary base has more than doubled in the last year, exploding well past growth in M2, and dropping local interbank rates to almost zero per cent.
As a result, mortgage rates have fallen below 1%, sending property prices into the stratosphere.
Due to its currency peg with the U.S. dollar, Hong Kong is experiencing ultra-loose monetary policy meant for a huge, far different economy 8,000 miles away.
Wanna see the bubble in its extreme? One property just broke a world record for price per square foot: