22 February 2019
Home prices in Hong Kong have been recovering after declining for six months until March. Photo: CNSA
Home prices in Hong Kong have been recovering after declining for six months until March. Photo: CNSA

Hong Kong home prices up 8.9% in six months

Home prices in Hong Kong were up 2.8 percent in September, marking the biggest monthly gain since a stamp duty was doubled on property transactions in February 2013.

According to the Rating and Valuation Department, the Index of Residential Property Prices stood at 295.5 points in September, up 8 points from the previous month and representing the highest level since October 2015.

After a decline spanning six months, the index started rebounding since April this year, recording an aggregate increase of 8.9 percent over the past six months, the Hong Kong Economic Journal reports.

The index is now just 3.5 percent lower than the all-time high of 306.1 points reached in September 2015.

Industry sources told HKEJ that the index could surpass the historical peak some time later this year as there is robust demand for large residential flats.

Dividing residential flats into five types in terms of size, all the segments saw prices rise by more than 2 percent on a month-on-month basis in September.

Among them, prices of Class B units (431 to 752 sq. ft.) rose the most — 2.9 percent month-on-month.

The Monthly Rental Index rose for the fifth consecutive month to 170.7 points, up 0.8 percent month-on-month. It is now just 3.8 percent below the historical high of 177.5 points seen in September last year.

Sammy Po, a director at Midland Realty, said he expects home prices to see an increase of around 7 percent in the fourth quarter this year, although the per-square-foot price of some of the residential complexes has already surged beyond their historical highs.

Louis Chan Wing-kit, managing director of Centaline, said the government could mull additional measures to curb property prices from soaring further.

Together with the potential rate hikes by the US Federal Reserve, the possible new measures from the government could pose a key threat to the Hong Kong property market in the short run, he said.

[Chinese version 中文版]

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