Hong Kong Developer `Price War' May Speed Property Correction
- CLSA says prices to fall 3% per month in first quarter
- Declines may prompt policy response to ease stamp duties
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Hong Kong property prices could fall 3 percent per month during the first quarter, driven by a “price war” between developers as they offer discounts to move a rising supply of homes, CLSA Ltd. said in a report.
CLSA expects a correction of 8 percent in the first quarter, accelerating from a previous estimate of a 2 percent decline. CLSA said the price declines will mostly come in the first part of the year and left unchanged its forecast of a 10 percent decline for all of 2016. The home price drops may prompt a response from Hong Kong policymakers, according to the report.