Hong Kong home prices may fall by 10% by 2016
Concerns have been raised over a potential Hong Kong property market correction, with analysts predicting that house prices will fall by up to 10% before the end of 2015. One expert noted the city&rsquo;s current trend of rising transactions at below market prices as an indicator of property market failure; this shift is believed to have been caused by the ailing economy affecting home buying desire. However, Morgan Stanley believes that any price decreases will be confined to 2015 and predicts prices will remain flat throughout 2016.
A 714 sq ft unit in Taikoo Shing was sold on Sunday for HK$12 million, 6 per cent below prevailing transaction prices. Photo: Felix Wong