Hong Kong Property Market May ‘Roll Over’ on Peg, MGPA Says

Hong Kong’s property market is showing signs it may “roll over” as prices drop over the next one or two years with the city’s currency peg linking it to the risk of higher U.S. interest rates, according to MGPA.

Prices of the city’s office buildings may decline as much as 20 percent while home values may fall up to 30 percent during that period, said John Saunders, Asia chief executive officer of MGPA, a private-equity real estate investment firm that manages $10 billion of assets in Asia and Europe.