http://www.cnbc.com/id/39818254
Hey recognize this cycle?
It's China's turn now.
The Hong Kong property market has seen a spectacular rebound since the global financial crisis. Real estate prices in the territory have risen 50 percent since the end of 2008: 30 percent in 2009 and 15 percent this year, compounded.
But many are warning that the increase is unsustainable. HSBC's CEO for the Asia Pacific region, Peter Wong, cautioned in early August that Hong Kong could soon be facing a property bubble. Mark Matthews, an equity strategist at Macquarie, says the bubble is already here.
"If you had $3 million, would you buy one condominium on Conduit Road, Hong Kong, or five (properties) in Miami?" Matthews noted, drawing comparisons between the sizzling market in the territory and the plummeting property prices in the South Florida city.
High-end property prices in Hong Kong have hit new highs and homes are now going for an average an $1,600 per square foot. Prices for Miami properties, on the other hand, have halved over the past three years to just $320 per square foot.
