Bloomberg News

Hong Kong Housing Prices May Be in Bubble, Face Collapse: Fitch

October 03, 2011

Oct. 3 (Bloomberg) -- Hong Kong’s housing prices may be in a bubble, and could repeat the collapse that occurred during the Asian financial crisis, Fitch Ratings said.

Fitch affirmed its ratings on Hong Kong’s debt, citing a prudent fiscal policy held by the city government and “resilience” in the economy supported by competitiveness of the services sector, according to a statement today.

Hong Kong home prices dropped by as much as two-thirds in 1997 during the Asian financial crisis. Prices began to rebound in 2005 and have nearly doubled since.

--Editor: Mohammed Hadi

To contact the reporter on this story: Sophie Leung in Hong Kong at sleung59@bloomberg.net

To contact the editor responsible for this story: Hwee Ann Tan at hatan@bloomberg.net


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