The future for Hong Kong’s property market is bleak, according to a commercial real estate services researcher.
That “dim outlook” on the city’s property comes amid a possible U.S. recession and China-U.S. trade tensions, Denis Ma, head of research at Jones Lang LaSalle, said Tuesday.
“If you look at Hong Kong’s property market, historically, basically when the U.S. economy catches a cold or sneezes, Hong Kong’s property market is going to catch a cold,”
Property is regarded as critical to Hong Kong’s financial stability. The real-estate sector is tracked as an indicator of the health of the wider Hong Kong economy and banking sector, according to the Hong Kong Monetary Authority.
The U.S. economy is one factor that could weigh on the Hong Kong property market, said Ma.
Analysts have suggested a looming recession could befall the U.S. in the year ahead. Last week, Morgan Stanley economists said there is a “credible bear case” for a recession, and set their estimates for such a downturn at 20%.