Hong Kong's housing prices are expected to rise by 10 percent this year after a 13-percent rise last year, according to a study released by the Bank of America Merrill Lynch on Wednesday.
Raymond Ngai, the bank's Head of Greater China Property Research, said that the prices rose because of limited market supply, and the government needs to sharply raise its annual supply target before prices could cool.
However, the bank is expecting shop rental, in particular the luxury end, to fall on the back of a slowdown in retail sales.
