Problems likely to build in US realty market on trade tensions

The US real estate sector may suffer more severely than its counterpart in China if the trade dispute between the United States and China gets more serious, said Robert McKellar, Asia-Pacific region executive chairman with international real estate services provider Savills.

The US move to impose higher tariffs on Chinese imports will result in a rise in product prices and inflation, ultimately leading to an interest rate hike, he said.

US consumers normally borrow more than their Chinese counterparts when buying residential property, and an interest rate rise means that they have to bear a heavier burden repaying housing loans, McKellar told China Daily in an interview on Friday.