Hong kong property prices to fall in 2016?

Prices of prime property in Hong Kong may fall by up to 10 per cent this year, according to Savills.

The international agent's latest market briefing for Hong Kong forecasts strong headwinds for prime residential real estate sales, including a looming interest rate rise and rising supply levels.

With more project launches in the pipeline, competition is expected to be fierce, prompting prices to be discounted to woo buyers.

Nonetheless, the super prime segment is facing a limited supply of property, which could drive up prices to new records.

"The house market may face tougher challenges as on Hong Kong Island alone, there are around 70 completed but unsold," concludes Savills' report.

Simon Smith, of Savills Research, adds: "Despite the poor investment sentiment due to the recent stock market correction, luxury volumes were again supported by strong primary sales. Price growth moderated, however, with the future looking increasingly uncertain."