HK developers' share prices show little reason to fear crash

Hong Kong

HONG KONG homeowners could be forgiven for fearing the worst. In a city notorious for its real estate booms and busts - including a 70 per cent tumble triggered by Asia's financial crisis in the late 1990s - property prices are once again sliding from all-time highs.

Yet, there's little reason to worry that the latest slump will spiral into another crash, if shares of Hong Kong's biggest developers are anything to go by. After a 34 per cent selloff from its June peak through Jan 21, the Hang Seng Properties Index has jumped 18 per cent in just two months - outpacing the broader Hong Kong equity market by almost seven percentage points.