Hong Kong at Risk of Property Price Correction, IMF Says

Hong Kong is at risk of an abrupt decline in house prices after they doubled to a record in the past four years, climbing 20 percent in 2012 even as the economy cooled, the International Monetary Fund said.

“The property sector is the main source of domestic economic risk,” the IMF said in a report on the city released today. At the same time, the odds of a slump that has major economic and financial consequences is “fairly low in the near term,” the fund said.