Home-seekers suspecting it is tougher than ever to buy received fresh proof yesterday with a report indicating prices reached a record high for a seventh straight month.
The Rating and Valuation Department’s monthly price index for private homes pushed deeper into record territory in October, although the pace of growth slowed. A gauge of prices in the secondary market also showed prices at record levels.
The department’s index climbed to 270.1, 1.5 per cent higher than September’s 266.1. The growth rate was down from the monthly rise of 1.8 per cent in September.
Centaline Property Agency announced its Centa-City Leading index, which tracks secondary home prices at 100 housing estates, also hit a record high as of yesterday. The index rose 0.23 per cent week on week to 130.46.
The property agency’s research head Wong Leung-sing expects the gauge may soon hit 136. But analysts said home prices would stabilise next year or even decline in view of increased project launches by developers.
According to the Rating and Valuation Department, the latest round of price rises has been driven by interest in small flats, with the price of units of 430 sq ft or below rising 1.7 per cent in October. Units bigger than 1,070 sq ft increased just 0.08 per cent.
The biggest growth was seen in Kowloon.