London overtakes Hong Kong as costliest city for new homes
Hong Kong slips to No 2 ahead of New York, says CBRE, though local price surge may change that
London has overtaken Hong Kong as the world's most expensive city to buy prime property, according to a global survey.
The average price for new homes in prime areas in Hong Kong stands at US$3,290 (HK$25,662) per square foot while in London, it is US$3,380 per square foot, according to the survey by international property consultant CBRE. New York ranks third, with the average price at US$3,040.
"Today, Hong Kong home prices are the highest we have ever seen. The government should review if its cooling measures are effective in curbing home prices," said Simon Lo Wing-fai, an executive director at Colliers International's research and advisory division. But Lo said he was not worried about the property bubble bursting anytime soon. "Yes, buying a flat in Hong Kong is expensive. But I do not see banks exposed to high lending risks as most new flats are bought by end-users."
The government, he said, should focus on increasing land supply to meet growing housing demand.
Hong Kong, however, could regain its No1 position next year as home prices are on an upswing again, surging to a fresh high last month.
Centaline Property Agency said its latest Centa-City Leading Index, which tracks secondary home prices at 100 housing estates, rose 0.23 per cent week on week to 130.46 last week. The index has risen 9.6 per cent so far this year to a record high.