Raising interest rates in Hong Kong for the first time in 12 years, as well as the ongoing trade dispute between the United States and China, led to signs of a downturn in the Hong Kong real estate market, Bloomberg writes. In the five weeks that have passed since the increase in interest rates, home prices in Hong Kong have fallen by 3%. During the correction period from 2015 to 2016, the price reduction was 13%. In September, the number of applications for mortgage loans fell by 56% to 7,977, which was the most significant drop in 20 years. The expensive real estate sector is also experiencing a significant decline in sales. Many real estate agencies are forced to lay off employees or send them on unpaid leave. In October, the number of deals decreased by 43% compared to September.