Date
18 January 2017
Chris Hoong says the government will step in if the decline in property prices reaches 20 percent. Photo: HKEJ
Chris Hoong says the government will step in if the decline in property prices reaches 20 percent. Photo: HKEJ

Far East Consortium expects 10-20% plunge in home prices in 2016

Hong Kong’s property market may fall more than 10 percent next year, but it would be unlikely to plunge more than 20 percent, Far East Consortium International Ltd. (00035.HK) managing director Chris Hoong Cheong Thard said.

Hoong believes that the government will step in if the decline in property prices reaches 20 percent, and so there is no way prices will fall 30 percent, the Hong Kong Economic Journal reported Friday.

The start of the correction in the property market reflects the three-year time lag for the effects of the government’s property curbs to kick in, Hoong said.

The developer is gauging the potential of replenishing its land bank.

It partnered earlier with New World Development Co. Ltd. (00017.HK) to buy a land parcel in Singapore for a residential project.

Far East’s net profit for the six months to September fell 34.3 percent from the same period a year ago as fewer property sales were booked.

[Chinese version中文版]

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