Signs of a Hong Kong real estate bubble?

The price of residential properties in Hong Kong declined 3.8 percent since November, according to a report by the University of Hong Kong. 

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    This chart shows the price of residential property in Hong Kong since 1997. Since suffering through the Asian financial crisis in 1997, property prices rose sharply in 2010.
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Today, the University of Hong Kong released their Hong Kong Residential Real Estate Series (HKU-REIS) indicating that, in December, the price of residential properties declined a notable 3.82% since November but still remained 7.87% above the level seen in December 2010.

It appears that after a stunning run of monthly increases that saw prices climb dramatically, prices are beginning to show a notable pullback with all measures declining on the month.

The HKU-REIS is a set of property price indices constructed monthly using a “modified” repeat-sale methodology similar to that of the S&P/Case-Shiller indices yet suited to the Hong Kong property market.

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