NEW World Development chairman Cheng Yu-tung expects luxury homes to continue to dominate growth in the residential market next year.
Speaking after the group's annual general meeting yesterday, Mr Cheng said the residential market would move up steadily, rather than have a drastic rise.
''The increase will probably be about 10 per cent next year, in line with the inflation rate,'' he said.
The luxury residential sector, which saw 30 to 40 per cent rises in prices this year, would remain the star performer, he said.
''The growth of luxury home prices will be higher than those of ordinary flats, but it should not be as drastic as the rate this year,'' he said.
Mr Cheng said prospects for the property market remained firm due to the territory's limited land supply and underlying demand for flats.
''There are no limits on the price of flats, which will be subject to demand and supply,'' he said.