Small, medium-sized flat prices up for the sixth month, but rise seen slowing
Demand strong for housing in New Territories but appreciation is slowing
Strong demand for small and medium-sized flats pushed Hong Kong home prices to a fresh high for the sixth consecutive month in September, but analysts believe the speed of appreciation is slowing.
The Rating and Valuation Department's monthly price index for private homes climbed to a record 265.8 in September, 1.8 per cent higher than in August. It has risen 8.45 per cent in the first nine months.
Prices of flats of up to 1,075 square feet of saleable area rose 1.84 per cent to 266.1 in September from the previous month. Prices of bigger units rose 1.18 per cent to 257.2.
The new round of property price rises has been driven by interest in small flats, especially in the New Territories.
A 430 sq ft flat in the New Territories on average cost HK$3.78 million in September compared with HK$3.35 million in January. A 750 sq ft flat in the New Territories fetched on average HK$5.8 million, some 13.5 per cent higher than in January.
But the average going rate of large flats, between 753 sq ft and 1,075 sq ft, on Hong Kong Island is currently HK$14,286 per square foot, compared with HK$14,478 per square foot in January.