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Hong Kong's Sky-High Property Prices Make City Too Risky for Savills IM

  • Japan, Australia are attractive markets, investment chief says
  • Asia has abundance of capital, shortage of assets, Patel says
Residential buildings stand in Hong Kong
Photographer: Justin Chin/Bloomberg
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Hong Kong’s sky-high prices and low affordability rank it as one of the riskiest property markets for Savills Investment Management, which is avoiding the city in favor of Japan and Australia.

“Hong Kong is highly, highly expensive,” Kiran Patel, who helps manage $18 billion as chief investment officer at Savills Investment, said in an interview in Singapore. “Even with the lowest cost of capital, it is hard to justify today. We don’t think you can keep going up one year after another.”