Hong Kong home values, which surged 70 percent in the past two-and-a-half years and outperformed stocks, are set for their biggest decline since Lehman Brothers Holdings Inc. collapsed in September 2008 as land supply increases and global growth slows. Midland Holdings Ltd. (1200) and Centaline Property Agency Ltd., the Chinese city’s two biggest real estate agents, said home prices are being reduced by as much as 10 percent. 

Andrew Lawrence, a Hong Kong-based analyst at Barclays Capital Plc is predicting prices to fall as much as 30 percent by 2013.

Source: Bloomberg

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