Since the beginning of 2009, there has been a 42 per cent increase in the cost of houses in the region.
Peter Wong, HSBC Holding's chief executive officer for the Asia-Pacific region, told Bloomberg: "Property prices are at a fairly high level right now.
"If it continues to increase, it may form a bubble."
According to property consultant Jones Lang LaSalle, real estate prices in Hong Kong may go up by a further ten per cent in the second half of this year if interest rates remain low and the economy continues to grow.
Earlier this year, HSBC relocated its chief executive Michael Geoghegan from London to Hong Kong.
Commenting when the move was announced in September 2009, Mr Geoghegan said that operating from Hong Kong would allow him to be on the ground in HSBC's "largest and most important region".
By Asim Shah