Property analysts predict increases of 8 to 10pc, thanks to strong economy and growing demand
In contrast to last year's bumpy ride, property prices will rise steadily this year, supported by continuing economic growth and increasing numbers of new families, industry figures predict.
The average price of a home is tipped to rise by between 8 per cent and 10 per cent, with small and medium-sized properties setting the pace, they say. Homes under 1,100 sq ft rose in value by an average of 7.2 per cent last year, well below the 11.3 per cent growth in the luxury sector, the Rating and Valuation Department said yesterday.
Home prices rose 6.8 per cent overall last year, with prices climbing rapidly early in the year but consolidating from the second quarter onwards.
The department's deputy commissioner, Lo Hing-chung, said interest rates had risen more than expected last year and that had affected the public's confidence in the property market towards the end of the year.
'Property prices have recovered by 1 or 2 per cent recently but it is still difficult to say whether the market has rebounded,' Mr Lo said.
Property agents said prices would rise fastest on the northern side of Hong Kong Island because of the strong demand for homes and the low vacancy rates.