The Froth in Hong Kong's Property Market

On Feb. 15, the South China Morning Post reported that WL Ng, a 37-year old IT manager based in Hong Kong, had recently refinanced his 35-year-old Quarry Bay flat and cashed in HK$900,000 to buy blue-chip stocks. He had bought the 980 sq ft apartment for HK$4 million (US$512,000) about three years ago. DBS Bank valued the flat at HK$5.7 million, a 42 pe…