If the situation continues, it will threaten Hong Kong’s standing as an international financial center, the association said.
A real estate industry association in Hong Kong is urging the government to set up a HK$20 billion ($3.28 billion) fund to invest in distressed properties to help prevent systemic financial risks.
Hong Kong’s commercial real estate slump is causing a surge in non-performing loans, forced asset sales and liquidity challenges for developers and investors, a representative of the Hong Kong and International Chapter of the China Real Estate Chamber of Commerce said in an interview with Bloomberg.
