Hong Kong’s property market is at risk in the next six months of a sharp downturn in prices, Macquarie analysts said in research released earlier this week. In a note dated Tuesday, the brokerage warned of divergence in real-estate prices, which are up 7.6 percent since the start of the year, and the share price of major property developers, which are down 0.4 percent as a group.
“The physical property market looks precarious over the next six months, and we don’t think developers’ stocks have factored in a worst-case scenario yet,” Macquarie said. It said housing prices could fall between 5 percent to 10 percent in the next 12 months, citing what it said was an expected slowing in Hong Kong’s economy, mounting global economic risks and new supply. -By Chris Oliver
Category: Hong Kong