"All the macro factors are out there," Peter Churchouse, CEO of Hong Kong real-estate investor Portwood Capital, told CNBC on Wednesday.
Churchouse expects the price decline to end up at about 15-20 percent through the end of 2019.
But Hong Kong is well placed to take such a hit, he noted, as households, property developers and banks are all in good financial shape. Banks and property developers are not highly leveraged and households have low debt and high savings levels.
Hong Kong has also experienced far worse before, Churchouse said, citing 60-70 percent declines in real estate prices between 1997 to 2003 — a period which included the Asian economic crisis and outbreak of severe acute respiratory syndrome, or SARS.
Given that residential prices have tripled since the global financial crisis, even a 20 percent decline is no major cause for worry, he added.
"Of course, the affordability is likely to be much improved if we see a correction of that kind," Churchouse said. "So that could bring buyers back into the market. I don't think we should be fundamentally or systemically concerned."