Home prices in Hong Kong are likely to move within just a 10 percent range this year, as the global economy has been recovering, Justin Chiu Kwok-hung, executive director of Cheung Kong Property Holdings Ltd. (01113.HK) said.
Chiu, who is also chairman of Fortune Real Estate Investment Trust (00778.HK), said there is no need for cutthroat competition among local developers, who are in general cash-rich, as demand from users is coming back, the Hong Kong Economic Journal reported Wednesday.
He said many potential homebuyers have returned to the market.
Nonetheless, Chiu said, the chances of a big rise in property prices are slim.
Meanwhile, he said Fortune REIT will only raise the rents at the malls that it operates on a case-by-case basis, as the shopping centers are meant to serve local residents’ needs.
He made that promise despite the commitment by the REIT’s management to deliver a stable and relatively high dividend ratio to unitholders.
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