Hong Kong’s 28-month property bull run just came to an end

On Thursday, the Swiss bank UBS issued a property report which identified housing prices in Hong Kong are the most overvalued in the world and at the greatest risk of collapse.

It added that a resident of Hong Kong would currently need to work 22 years to afford a 60 m2 flat in the Asian metropolis. Ten years ago it was just 12 years

This backed official statistics that show that the former British colony has seen house prices rise at an annual rate of almost 10 percent since 2012.

Measures to rein in prices in Hong Kong have until now been considered ineffective and there has been some suggestion that tighter restrictions could be coming for non-local homebuyers.

Hong Kong focused property companies that are listed on the Hang Seng index struggled on Friday.

CK Asset Holdings fell almost more than 2 percent while Sun Hung Kai Properties shed 0.96 percent of its listed value.

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