Prices rise amid tight supply of flats as sales decrease

Tight housing supply led to a decrease in secondary home sales in Hong Kong last week, but prices continue to rise.

Data from Ricacorp Properties showed that for the week to Sunday, 166 second-hand flats were sold in the 50 largest private housing estates it monitors, the fewest in 15 weeks and down 17 per cent from the 200 sales the previous week.

But property prices increased for the eighth consecutive week, rising 0.2 per cent last week, the agency said.

The Centa-City Leading Index from Centaline Property Agency, which tracks second-hand home prices at 100 housing estates, rose 0.01 per cent week on week to 123.36, the highest in 68 weeks. That is just short of the market peak of 123.66 in mid-March last year.

"Only housing estates on Hong Kong Island continue to record growth in sales. In Kowloon, the lack of flats available for sale and the increasing property prices have dampened buying interest," Ricacorp director David Chan said.

Sales in Kowloon dropped 28 per cent to 60 flats during the period. Major housing estates such as Harbour Place in Hung Hom, the Latitude in San Po Kong, Island Harbourview, Central Park and Park Avenue in Tai Kok Tsui did not record any sales.