Henderson Land boss foresees mild correction in Hong Kong property prices

Hong Kong home prices will not see a sharp fall but rather a mild correction of about 5 per cent in the coming year, property tycoon Lee Shau-kee said.

“Land and construction costs are still high so home prices are unlikely to drop sharply,” said Lee, who is chairman of Henderson Land Development.

Lee was speaking in Beijing after attending the topping out ceremony of a science and technology building at Tsinghua University, to which he donated 300 million yuan (HK$365 million).

Although the increase in supply in the next few years may put pressure on property prices, demand remained strong, he said.

A recent report by investment bank UBS said Hong Kong home prices could tumble 30 per cent by the end of 2017.