Hong Kong’s real estate stocks aren’t keeping up with housing prices

Concerns over continued price growth have investors playing defense

New York /
Mar.March 21, 2018 03:30 PM

Hong Kong, China

Hong Kong housing prices are still going through the roof, but investors’ concerns over how much room the property market has to run are keeping developers’ stock prices lagging behind.

Home prices in the city jumped nearly 17 percent last year and have nearly tripled since 2009, the Wall Street Journal reported.

But despite strong sales, stock prices for major developers are trading at an average discount of 40 percent to their net asset value. That’s been true for much of the past decade, after stocks traded close to book value in the late 1990s, when property prices saw their last peak.

Global investors are showing doubts regarding pricing growth, especially as the threat looms of rising interest rates. And stocks have gone from being growth plays to defensive bets partly because developers’ profits are shifting away from sales to growing rental portfolios, the Journal reported. [WSJ]Rich Bockmann


Related Articles

arrow_forward_ios
A photo illustration of Gainesville Mayor Harvey Ward and Gainesville, Florida (Getty, Harvey Ward)
NIMBYs triumph in Florida upzoning battle
NIMBYs triumph in Florida upzoning battle
25 Cactus, Irvine, CA and Albert Pujols
Albert Pujols lists Irvine mansion for $10M
Albert Pujols lists Irvine mansion for $10M
Fromk left: Mauricio Umansky, Christian Ulbrich, and Scott Rechler
They said what now? Real estate quotes of the week
They said what now? Real estate quotes of the week
RXR's Scott Rechler, Tamir Shemesh, Richard Meruelo, and Maria Meruelo (Getty, Serhant, Coldwell Banker)
Breakups, layoffs and walkaways: No love in real estate last week
Breakups, layoffs and walkaways: No love in real estate last week
Connecticut proposal would convert empty box stores into housing
Connecticut proposal would convert empty box stores into housing
Connecticut proposal would convert empty box stores into housing
(Photo Illustration by The Real Deal with Getty Images)
The housing correction is a tale of two markets
The housing correction is a tale of two markets
A photo illustration of Manhattan Borough President Mark Levine (Getty, Office of Mark Levine)
Map: Here’s a treasure trove of Manhattan resi development sites
Map: Here’s a treasure trove of Manhattan resi development sites
Albany buildings
How Albany is dealing with its 1K vacant buildings
How Albany is dealing with its 1K vacant buildings
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...