Hong Kong property tumble feared
Experts have warned of the heightened risk of a crash in the Hong Kong property market
The Royal Institution of Chartered Surveyors said the Chinese district was seeing house price growth that was not being supported by underlying economic data.
The body warned that its forecast of between 3 and 3.5 per cent GDP growth in Hong Kong during 2012 was likely to be revised down.
Manufacturing output is falling and retail performance is weakening, according to RICS, with Hong Kong exposed to the China slowdown as well as the eurozone crisis.
Yet data from the Hong Kong Monetary Authority showed that the value of mortgage loans approved increased in May.
It was up 5.2 per cent from the previous month to HK$26.7 billion (£2.2bn).
RICS economist Andy Wu said: ‘Worryingly, the phenomenon of a resurging property market shows little sign of abating in spite of a slowing economy.
‘We believe the current macro backdrop is not particularly favourable for the real estate market and may ultimately trigger some volatility in the property sector.’
AJ revealed last week that UK architects were gearing up for a second design boom in China despite the recent slowdown in the country’s growth.
A clutch of practices have decided it is time to set up offices in China, with both Wilkinson Eyre and Zaha Hadid Architects looking at Hong Kong for new bases.
Simon Yu of Zaha Hadid Architects said: ‘There is still a window for UK practices in China. When I came in 2004-05 we felt we’d got there too late.
‘But nearly a decade later and we are managing to secure projects and it seems fairly stable. It might even be a little better than that. It hasn’t dried up at all.’