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Hong Kong Housing Rebound May Be Short-Lived, Analysts Say

  • Short-term sentiment buoyed by equity markets, dovish Fed
  • Nomura’s Gao expects prices to fall up to 35% from peak levels
A container ship sails past commercial and residential buildings in Hong Kong, China, on Thursday, July 21, 2016. Hong Kong's trade balance figures are scheduled to be released on July 26.
Photographer: Anthony Kwan/Bloomberg
Updated on

Hong Kong’s secondary property prices rose in the second quarter, marking a pause in a correction that analysts said may resume amid higher supply and weaker demand.

Secondary property prices advanced 1.6 percent in the three months ended June 30, compared with a drop of 4.8 percent in the prior three months, according to figures released Friday by the Rating and Valuation Department. Analysts from Nomura Holdings Inc., CIMB Securities Ltd. and CLSA Ltd. are among those predicting that the rebound would be short-lived.