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Uncertainty Abounds in Asia's Property Markets

Questions of affordability arise in the East as prices increase but sales drop

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A three bedroom, three bathroom home on the market in Hong Kong for $25.8 million.

HONG KONG SOTHEBY'S INTERNATIONAL REALTY
A three bedroom, three bathroom home on the market in Hong Kong for $25.8 million.
HONG KONG SOTHEBY'S INTERNATIONAL REALTY

Things have started to wobble in Asia’s real-estate market, which saw an impressive growth in recent years but whose outlook is now increasingly uncertain, according to a report by private bank HSBC. Home prices increased almost everywhere in the region, led by Hong Kong. Values in the city rose a staggering 170% since the second quarter of 2007; today they are 11% higher than a year ago. However, property sales in November fell to their lowest levels since 1999.

HSBC

The only exception to Asia’s rise is Japan, where home prices declined over the same period.

HSBC

The HSBC Global Research report leaves open the question of how the Fed’s moves this week in the U.S. will affect prices in Asia and how can China keep growth in property prices. Affordability, key in the long term, has been declining in most Asian markets, including Hong Kong, India, Taiwan, Malaysia and Thailand. Read the full report here.View full listing (pictured top)