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Hong Kong Housing Prices to Fall a Further 10%, Nomura Says

  • Retail rents to fall 5% as consumer spending, tourism weakens
  • Sun Hung Kai, Kerry Properties are top property picks: Nomura
Photographer: SeongJoon Cho/Bloomberg
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Hong Kong home prices will fall a further 10 percent as a pipeline of new developments is met by stalling income growth and looming interest rate hikes, Nomura Holdings Inc. said in a report.

“We are bearish on the physical property market, on a weakening economy, deteriorating affordability, declining retail sales and stagnant real household income growth,” analysts led by Jeffrey Gao wrote in a note Tuesday. Prices will decline over the medium term, the analysts said, without being more specific.