Quantitative Easing

Hong Kong flat prices reach record highs for third week

PUBLISHED : Saturday, 13 October, 2012, 12:00am
UPDATED : Monday, 30 May, 2016, 2:05pm

Hong Kong's home prices show no sign of cooling, with flat prices in major housing estates climbing to record highs for three straight weeks.

The Centa-City Leading Index compiled by Centaline Property Agency, which tracks prices at 100 mass and luxury housing estates across the city, rose to 111.11 for the week to October 7, up 0.88 points from the previous week.

Centaline said the third round of quantitative easing by the US Federal Reserve had pushed up home prices 2.72 per cent in the last three weeks.

"The rising trend will continue as we have seen residential prices breaking records in many housing estates," Patrick Chow Moon-kit, head of research at Ricacorp Properties, said.

He said the index could reach 115 points by the middle of next month as the market sentiment remained strong.

The index tracks secondary market home prices, with the benchmark of 100 reflecting prices in July 1997.

Land Registry and the Companies Registry data show that a 5,628 sq ft house at The Royal Oaks in Sheung Shui was sold for HK$94 million, or HK$16,700 per sq ft, on September 20.

The property, which also comprises a 7,000 sq ft private garden, is the most expensive in the housing estate. It was bought by Thousand Policy, a company owned by property investors.

Meanwhile, Centaline branch manager Roy Wong said a 404 sq ft flat at the Tsuen Wan Centre changed hands for HK$2.63 million, or HK$6,510 per sq ft, making it the highest recorded unit price since 1998.

The Lands Department said yesterday it would release two residential sites - one in Tseung Kwan O and the other in Jordan, Kowloon - for public tender on November 9.

The Tseung Kwan O site, in Area 68A1, can yield a total gross floor area of 429,731 sq ft, while the other in Kwun Chung Street, Kowloon, will provide a total gross floor area of up to 26,275 sq ft. The tender will close on December 7.

Centaline estimates the two sites could fetch a total of HK$2.21 billion.