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HK home prices may fall 25%, says Merrill Lynch

Analyst points to increasing supply, chances of interest rates going up

[HONG KONG] Hong Kong home prices will fall as much as 25 per cent from their peak as housing supply increases and the possibility of rising interest rates grows, according to Bank of America Corp's Merrill Lynch unit.

Prices will drop 5 per cent this year and another 15 per cent in 2014, Raymond Ngai, a property analyst, told reporters at a briefing yesterday. He declined to give forecasts beyond 2014.

UBS AG said on Tuesday that it expects prices to decline 5 per cent in 2013 before dropping 15 per...

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