Hong Kong home prices rose for seventh straight month

Hong Kong home

According to an index of Centaline, prices broke a historical high level in early August

Prices of private homes in Hong Kong increased 0.46 per cent in July, official data showed on Friday, just short of a record high, supported by strong pent-up demand and hopes that mainland Chinese buyers will soon return.

The prices in one of the most expensive property markets rose for the seventh straight month, according to last month’s data, and compared with a revised 0.1 per cent rise in June.

Realtors expect the price index, which stood at 396.3 in July, will break the 396.9 record posted in May 2019 in the third quarter.

A high turnover in the market is positive for buyers’ sentiment, said Thomas Lam, executive director of Knight Frank. The buying power can persist into end of year.

According to an index of realtor Centaline that tracks the secondary home market, prices broke a historical high level in early August, before dropping 0.5 per cent in the following week.

The realtor said potential buyers were now turning more cautious to chase after record high prices.

Another real estate agent, Midland, expects overall home prices could rise at a slower pace until the border with mainland China reopens.

In a survey published last month, Midland, who interviewed 1,112 people, said the percentage of respondents showing their willingness to buy a property and buying for investment both reached the highest levels, and 51 per cent of respondents said they expected prices to rise in the next six months.

Hong Kong’s one-month interbank rate, which many mortgage rates are linked to, stayed at over 11-year lows and also helped to support the market.

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