There’s no Hong Kong housing market ‘bubble’, insists CK’s Victor Li
- Speaking at an EGM in Hong Kong, new chairman also says he plans no change in direction now he has the CK reins following retirement of father Li Ka-shing
- Company will make acquisitions which offer sustained returns
Victor Li Tzar-kuoi, the elder son of Hong Kong’s richest man Li Ka-shing, says Hong Kong’s housing market is not in a bubble waiting to burst despite continued skyrocketing prices, and dismisses suggestions he is about to change the development path of the group his iconic father founded.
His comments contrast with a UBS report released in September which suggested the market remained the world’s most overvalued for homes, and was seriously at risk of overheating.
“Do not say it is a bubble. It is not that serious,” the new chairman of CK Asset Holdings said after the firm’ held an extraordinary general meeting (EGM) on Tuesday.
“Hong Kong’s homes are expensive but it [the market] has been costly for so many years.”
The Swiss bank’s report warned that “investors should remain selective within housing markets in bubble risk territories such as Hong Kong”, which has “an elevated risk of a large price correction” after home prices have continued to increase by an annual rate of almost 10 per cent since 2012.