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
Zillow: iBuyers Account for Record 1.9% of Home Sales in Q3
iBuyers reached record housing market share, sales volume
iBuyers reached record housing market share, sales volume
CoStar CEO Andy Florance
CoStar comes home to play
CoStar comes home to play
Cash-Out Home Refinancing Hits 14-Year High in Third Quarter
Cash-out mortgage refinancing hits 14-year high
Cash-out mortgage refinancing hits 14-year high
Gov. Kathy Hochul (Getty, iStock)
Hochul opens $539M homeowner assistance fund
Hochul opens $539M homeowner assistance fund
WATCH: SmartRent’s Lucas Haldeman on multifamily’s tech era
WATCH: SmartRent’s Lucas Haldeman on multifamily’s tech era
WATCH: SmartRent’s Lucas Haldeman on multifamily’s tech era
Proptech unicorn Pacaso’s meteoric rise — and fallout
Proptech unicorn Pacaso’s meteoric rise — and fallout
Proptech unicorn Pacaso’s meteoric rise — and fallout
$22M pad at 111 West 57th tops Manhattan luxury market
$22M pad at 111 West 57th tops Manhattan luxury market
$22M pad at 111 West 57th tops Manhattan luxury market
Buyer in deal for oceanfront Wainscott home asking $37M
Buyer in deal for oceanfront Wainscott home asking $37M
Buyer in deal for oceanfront Wainscott home asking $37M
arrow_forward_ios

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

Loading...