Demand for small flats drives Hong Kong market to new high
Strong demand for small flats helped push Hong Kong property prices to a fresh high for the third consecutive month in July, with analysts expecting gains to continue in the coming months.
Strong demand for small flats helped push Hong Kong property prices to a fresh high for the third consecutive month in July, with analysts expecting gains to continue in the coming months.
The Rating and Valuation Department's monthly price index for private homes climbed to a record 255.6 in July, 2.2 per cent higher than in June.
It cost an average of HK$5.06 million to buy a 431-square-foot flat on Hong Kong Island in July, compared with HK$4.9 million in March. A flat of that size in Kowloon fetched HK$4.18 million, some 8.8 per cent higher than HK$3.84 million in March.
In the New Territories the average price of a flat of that size rose to HK$3.7 million from HK$3.4 million in March.
The rental index rose to 157.7 in July, 0.32 per cent higher than the previous peak of 157.2 set in November last year.
"Property price growth may continue until the end of October or November," independent economist Kwan Cheuk-chiu said. "The government should release a new round of cooling measures in the property market. Otherwise, prices will continue to go up and the property bubble will burst."
