UBS forecasts 30% drop in Hong Kong house prices
UBS has said that house prices in Hong Kong could fall by as much as 30% between now and the end of 2017, due to shrinking demand brought on by the deteriorating state of the economy, rising unemployment, and lower inflation. Hong Kong house prices are currently the highest relative to property developer stocks in almost two decades, which a property analyst at Bocom International says "is a sign that the property market will drop as much as 20% in the last quarter this year". Since 2003, property prices in Hong Kong have risen 340%.

The iconic skyline of Hong Kong where Swiss bank said home prices could stumble through 2017 due to a deteriorating economy. Photo: AFP