New | 10pc fall in Hong Kong home prices ‘nothing special’, Li Ka-shing says

Billionaire Li Ka-shing has described a 10 per cent fall in Hong Kong home prices as “nothing special” as the business environment is getting tougher this year.

“This year, people in different industries will have to work harder ... Retail [sales] are falling, the import and export business is declining while hotel [operators] also see lower income,” he said ahead of the annual dinner held by his group of companies – CK Hutchison Holdings and Cheung Kong Property Holdings – on Thursday.

On the Hong Kong property market, he said the performance would hinge on whether the supply and demand of flats could strike a balance.

“Home prices will climb as demand soars but fall when demand is squeezed in a depressed economy,” he said.

He also said stock prices could go up and come down. “It happens worldwide,” he said.

Li’s comments came after the Hang Seng Index slid 3.1 per cent yesterday to close at 20,333.34 points, its worst finish since July 2013. The drop also marked its steepest daily percentage decline since late August, when a meltdown in mainland markets sparked a global sell-off.