FOLLOWING a prolonged lull in Hongkong's property market, the latest Brooke Hillier Parker (BHP) property report showed that activity has finally picked up. ''There was definitely more activity from investors in March. Overall, there were approximately 11,000 agreements,'' said Mr David Faulkner, a partner at BHP. ''We are indeed seeing prices edge up, but it is important not to confuse this with an 'active market','' Mr Faulkner said. According to the BHP report, flats in Hongkong saw the greatest increase with a 0.7 per cent price rise for the three months of the first quarter. At the same time, flats in Kowloon and the New Territories showed price increases of 0.5 per cent and 0.03 per cent respectively. Class D flats witnessed the most significant appreciation in the territory. Flats selling for $4,029 per square foot (psf) at the end of the fourth quarter were quoted at $4,115 per square foot at the end of March, showing a 2.1 per cent rise. Both Class B and C flats in Hongkong rose one per cent. Class C flats in the New Territories showed the overall highest jump as prices increased by 11 per cent in the first quarter. Prices were $2,883 per square foot in December but selling at $3,200 according to March figures. As for Kowloon, the report revealed that Class C prices took the lead with a four per cent increase. Selling at $3,295 per square foot in December, prices are currently at $3,425 per square foot. This overall market trend - showing activity by upper-end investors - highlights once again how lower-end investors remain blocked by the 70 per cent mortgage ceiling. ''Due to the ceiling, the focus is still on the upper end of the market. Of course this means we're seeing a strong amount of rental activity.'' Mr Faulkner added that there was a consistent climb in prices of Mid-Levels flats. Showing only a 2.7 per cent increase in flat prices for the first quarter, a wider analysis shows a 130 per cent increase since the beginning of last year when flats were selling for $3,451 per square foot. ''There is quite a good supply, giving investors a good choice at the moment. Flats are more or less 'single or couple size' with often less than 1,500 square feet,'' Mr Faulkner said. ''Of course, the new escalator out there will make the area more accessible and will solve several problems. ''It will indeed make the Mid-Levels region very attractive,'' he said, ''and I think that the current space available out there will be taken up.'' Asked about the future of Hongkong's overall property market, Mr Faulkner said: ''Which way will it go? You tell me the outcome of the current political situation and I'll tell you where the market's going.''
