Hong Kong Home Prices to Slump Through 2024, Morgan Stanley Says

Bank previously expected real estate prices to rise this year
Sentiment darkened by a sliding equity market, bank says

WATCH: hina’s property market is in crisis. Bloomberg Originals explores how the real estate sector became such a mess and what the implications could be for the global economy.Source: Bloomberg

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By Jacob Gu

October 12, 2023 at 8:33 PM UTC

Updated on

October 13, 2023 at 2:30 AM UTC

This article is for subscribers only.

Morgan Stanley abandoned its “too optimistic” call for Hong Kong residential property values to rebound this year, and now sees the market suffering two additional annual declines.

The Wall Street bank expects home prices in the Asian financial hub to fall 3% in 2023, in contrast with a previous forecast for an increase of 8%, analysts Praveen Choudhary and Jeffrey Mak wrote in a research note Wednesday. That follows a 16% tumble in 2022, according to the bank.