Li Ka-shing foresees HK realty recovery

Hong Kong's richest man Li Ka-shing expects property prices in the city will rise "a little bit" this year, even as the government takes steps to cool the world's costliest real estate market.

The government in November increased the stamp duty to 15 percent for all residential purchases, excluding first-time buyers who are permanent residents. The curbs initially sent developer stocks tumbling - including shares of Li's Cheung Kong Property Holdings Ltd - as investors assessed the effect the new rules would have on turnover and value.

CK Property shares are down about 15 percent since the tax was increased. Yet private housing prices in November surged to the highest since data was first made available in 1979, the city's rating and valuation department said on Dec 30.