Signs of downturn at Hong Kong’s housing market started to appear after the city raised interest rate first time in twelve years, as well as amid escalation of trade conflict between the US and China, Bloomberg informs.

Homes prices fell by 3%, while during last correction in the period from 2015 to 2016 they lost 13%.

It has been five weeks since the interest rates were raised. During this time number of mortgage applications fell significantly. In September it was 56% down to 7977. This is the largest decline in 20 years. Besides, there is a drop in luxury property sales. As of real estate agencies, they started laying off personnel and offering non-paid vacations.

Volumes of new house deals in dollars fell to the lowest in six months in October, while number of deals declined by 43% compared with September to 1140.