Date
22 August 2017
Home prices are expected to remain robust in the first half, with full-year price growth estimated at 5 percent amid expectations of higher interest rates. Photo: HKEJ
Home prices are expected to remain robust in the first half, with full-year price growth estimated at 5 percent amid expectations of higher interest rates. Photo: HKEJ

Average home prices top HK$10,000 psf for first time

Hong Kong home prices have hit an average of HK$10,000 (US$1,290) per square foot in major housing estates, the Hong Kong Economic Journal reported Friday.

The figure was recorded last month, the first time average home prices had reached that level, the report said, citing the Midland Market Property Price Index.

The index measures the weighted average usable price per square foot in 100 major private residential developments.

In December, the index was up 1.3 percent, the 11th straight month of growth, the report said.

Midland expects the trend to continue in the first half, with full-year growth estimated at 5 percent amid expectations of higher interest rates and despite increased supply of new flats.

Overall housing prices had risen for nine consecutive months to a guidance of 227.6 points by the end of last year, according to the Rating and Valuation Department.

The figure was up 13.3 percent from January to December, with units above 1,076 square feet rising 5.7 percent on average and smaller units by 13.6 percent.

Smaller units are expected to continue to fetch higher prices, the report said, citing industry experts.

Norman Chan, chief executive of the Hong Kong Monetary Authority, earlier said additional measures will be implemented to curb home prices.

Translation by Vey Wong

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