Pursuits
Goldman Cuts Hong Kong Property Seeing 20% Drop in Home Prices
- Rising interest rates, cooling measures to drive declines
- Real estate stocks lowered to neutral from attractive
Goldman Sees 20% Decline in Hong Kong Home Prices
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Hong Kong property stocks were downgraded by Goldman Sachs Group Inc., which predicts a 20 percent decline in home prices as borrowing costs rise.
The drop will be “driven chiefly” by a potential 150 basis points to 200 basis points increase in interest rates and the “limited prospect of any loosening of government cooling measures in the near term,” Goldman Sachs property analyst Justin Kwok said in a research note Thursday. The Wall Street bank cut the Hong Kong property sector view from attractive to neutral, saying that “tough conditions of high prices and low volumes” will persist.