Hong Kong Housing May Be Headed for a Correction

  • Evidence of weakness ranges from slumping sales to price cuts
  • Tales include one buyer walking away from $7 million deposit
Photographer: Paul Yeung/Bloomberg
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Signs of a housing market downturn in Hong Kong are spreading after the city’s first interest-rate increases in 12 years and an escalation in trade tensions between China and the U.S.

“We’re now in a correction like the one we had during 2015 to 2016,” said Cusson Leung, JPMorgan Chase & Co.’s head of property and conglomerates research in Asia, citing buyers’ fears for the outlook of both the Hong Kong and Chinese economies.