Hong Kong property shares touch one-month lows as interest rate worries grow
Sun Hung Kai, CK Asset and Henderson Land among those falling on view that higher borrowing costs are coming and will hurt home buying
Property shares in Hong Kong slid to one-month lows on Thursday as strong US economic data added to fears of an interest rate rise next month that would weigh on home prices by nmaking mortgages more expensive.
The declines follow recent reports by three investment banks predicting a drop in home prices in the world’s least affordable home market. Home prices have risen for 27 straight months, but CLSA predicts they will drop 15 per cent over the next 12 months.
Sun Hung Kai Properties, Hong Kong’s biggest developer in terms of market value, fell to HK$116.20, its lowest level since mid-July, before closing at HK$116.80, down 1.1 per cent. CK Asset Holdings, chaired by Victor Li Tzar-kuoi and the city’s second-biggest developer by market value, ended at a one-month low of HK$54.55, down 2.24 per cent.
Henderson Land Development also fell to a one-month low, closing at HK$40.80. It reported a jump in core earnings by 52 per cent in the first half of the year after the market closed.
New World Development, chaired by tycoon Henry Cheng Kar-shun, recovered some ground to finish 1.2 per cent lower at HK$10.36, after falling to as low as HK$10.32 during the session. Hang Lung Properties dropped by 1.27 per cent to HK$15.56 while Country Garden fell 1.47 per cent to HK$12.06.