Pursuits
Hong Kong Property Prices Are Near Their Peak: JPMorgan
- Fixing stamp duty loophole to help reduce speculation
- Office landlord stocks, Cheung Kong Property mostly preferred
Lightning strikes near residential buildings in the Sheung Wan district of Hong Kong. Hong Kong’s existing-home transactions probably fell to the lowest level in almost 20 years in October as prospective buyers are waiting for prices to drop.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
Hong Kong housing prices are close to their peak and economically “unsustainable,” said Cusson Leung, managing director at J.P. Morgan Chase & Co.’s Asia Pacific equity research unit.
Price increases in the world’s most expensive home market have outpaced Hong Kong’s gross domestic product growth “significantly” since 2009, and any external shocks could trigger tighter liquidity in the city’s banking system, increasing home buyers’ borrowing costs, Leung said in an interview.