Real Estate Bubble

Letting the air out of the bubbles

Since China's stock market was created in 1992, its price-earnings multiple has fallen from about 100 times to 20 times. Photo: Reuters

Despite the familiar refrain from analysts these last few years, China's real estate and credit bubbles have not burst. While I, too, am worried, I have not been brave enough to venture a prediction until now: I think the bubble will gradually deflate over a decade or two, rather than burst dramatically.

Thursday, 3 April, 2014, 1:00am 8 comments

Frenzy over parking slots may be new real estate bubble

Investors looking for new areas to park their cash in Hong Kong are driving up prices for parking spaces. Photo: AP

Money-minded Hongkongers will never let go any opportunity to make some quick money. Stocks and foreign currencies or flats and shops invariably have an appeal to those with some spare cash to invest. The latest most-sought item is apparently a parking space attached to a housing site.

28 Nov 2012 - 5:36am

Franklin Lam has no place in Exco

Franklin Lam Fan-keung has no place in Exco.

Franklin Lam Fan-keung may well believe he is in the public sector to serve the people and fulfil his civic duty. But here is a man who spent much of his highly lucrative career as a senior executive at the UBS investment bank analysing the property market, and advising and hobnobbing with high-net-worth clients and powerful bosses in the property sector.

31 Oct 2012 - 7:34am 4 comments

Fears of housing bubble

Bright spots on the global property scene are about as abundant as good news in Greece right now. New data shows house prices have fallen in at least 24 countries this year, and have risen in only 12. In this, the first of a two-part series, we look at two of the best performers: Brazil and India.

6 Jun 2012 - 12:00am

Financial secretary warns on economy as stocks sink

Hong Kong's economy faces a 'rocky' time ahead, the financial secretary said yesterday, as the city's bourse slumped again, wiping out its gains for the year.

5 Jun 2012 - 12:00am

HK home sales falling amid fears of a bubble

Home sales continued to fall last week and are expected to drop further as sentiment among homebuyers sags because of the European debt crisis and government warnings about rising risks of a property bubble forming in Hong Kong.

30 May 2012 - 12:00am

Government is the cause of market failure, not its solution

Leung Chun-ying believes a more interventionist government would be a good thing.

According to the front page of last Thursday's South China Morning Post, Hong Kong's next chief executive thinks 'the government should intervene to prevent market failure and keep property prices at a level affordable to the public'.

17 Apr 2012 - 12:00am

Tsang warns buyers to beware of price bubble

Outgoing Financial Secretary John Tsang Chun-wah issued a fresh warning yesterday about the danger of a property price bubble and urged buyers not to 'dash mindlessly into the market'.

Writing in his official blog, Tsang urged Hongkongers to 'be cautious' when buying flats and not to be taken in by 'the myth that property prices will only rise and never fall'.

9 Apr 2012 - 12:00am

Risk of a housing bubble? It's already with us

'On my radar screen another risk has emerged. That's the risk we encountered back in 2009: the renewed risk of a housing price bubble. The city's low mortgage rates are hugely negative. Lots of people have come to the conclusion that they buy bricks and mortar, tangible assets, and could preserve their purchasing power.'

27 Mar 2012 - 12:00am

Fears of a mainland housing bubble are wildly inflated

One of the main reasons so many people say the mainland's economy is heading for a hard landing is that they believe the country's housing market is an enormous bubble that's on the point of bursting.

You can understand why they think that. Even according to the most conservative estimates mainland home prices have doubled in the last 10 years or so.

15 Jul 2011 - 12:00am

Look before you leap

Professional property investor Danny Lim isn't sure how much further Hong Kong's property rally has to go. Forecasters have been ripping up their predictions for the year ahead because the market keeps getting ahead of them, and all signs point to continued gains for the rest of this year.

11 Apr 2011 - 12:00am

Leverage can mean a ton of gain or a world of pain for homebuyers

One of the primary attractions of property as an asset class is the ability to use leverage. By putting a downpayment on a property and getting a mortgage from the bank to make up the rest of the purchase price, you're getting an opportunity that an individual investor would rarely get with other asset classes.

11 Apr 2011 - 12:00am

World Bank economist warns of property bubble

Justin Lin Yi-fu, the World Bank's chief economist, says the mainland must be wary of the possible risk of a property bubble. Lin, who was the founding director of the China Centre for Economic Research at Peking University before joining the World Bank, stressed he has confidence in the mainland's economy in view of the government's strong finances and foreign exchange reserves.

11 Feb 2011 - 12:00am

More public housing the key to affordable property

We don't really need an international survey to tell us that Hong Kong's property prices are among the highest in the world. But one recent study, which has been called the 'gold standard' for assessing housing affordability, says the city's homes are 'severely unaffordable'.

2 Feb 2011 - 12:00am

Take HK housing affordability surveys with a big pinch of salt

For the past week, the news pages of the South China Morning Post have been peppered with stories about how Hong Kong has the least affordable housing market in the world.

1 Feb 2011 - 12:00am