Goldman Sachs downgrades HK property, sees 20% drop in prices

The drop would be

HONG KONG: Hong Kong property stocks were downgraded by Goldman Sachs Group Inc, which predicts a 20% decline in home prices as borrowing costs rise.

The drop would be “driven chiefly” by a potential 150 basis points to 200 basis points increase in interest rates and the “limited prospect of any loosening of government cooling measures in the near term,” Goldman Sachs property analyst Justin Kwok said in a research note.