Every school kid learns what goes up must come down, and that lesson is being amply demonstrated in Hong Kong. The city-state, known for its spectacular real estate market rises and falls, has a residential property market currently on a downward slide from record heights.

Overall home prices in Hong Kong already have dropped about 12 percent from their September 2015 high, and analysts say they will keep dropping. Sales volumes hit a 25-year low in February 2016 before rebounding in March due to price cuts. But by the end of June, sales were still down 40 percent compared with first half 2015.

The number of cases of negative equity rose 14 times in first quarter 2016 from the last quarter of 2015, and the total number of underwater homes continues to mount. Meanwhile, the projected supply of new homes is estimated to be 92,000 in the next three to four years.

And the situation is not expected to improve any time soon. “It’s probably safe to say that the dow