Crash feared as Hong Kong market overheats
House prices in Hong Kong could drop sharply, surveyors have warned.
The Royal Institution of Chartered Surveyors said residential property values had risen ahead of underlying economic factors, while the HK Rating and Valuation Department house price index increased by 6.3 per cent in March after eight consecutive months of slowing growth.
In addition it has emerged home loan approvals almost doubled in the same month, with applications for mortgages increasing by two-thirds.
But RICS economist Andy Wu said: ‘Arguably, all these signs point to the re-emergence of an overheating property sector. We suspect a growing deviation in house prices from current economic fundamentals.
‘Indeed, the further prices climb above underlying fundamentals, the greater the risk of a severe correction.’
In March, AJ revealed that a number of UK practices had registered their interest in the first major building to come out of a huge masterplan in Hong Kong.
Firms from the UK were among those from around the world vying to design the Xiqu Centre within the West Kowloon Cultural District.
Submissions were due last week for noise mitigation retaining structures for the city’s Tsuen Wan bypass.