Hong Kong property

Hong Kong home prices rebound for second consecutive month

PUBLISHED : Thursday, 30 June, 2016, 3:22pm
UPDATED : Thursday, 30 June, 2016, 10:53pm

Hong Kong home prices in May rebounded for the second consecutive month but are still 10 per cent lower from their September 2015 peak, according to government data.

Industry observers expect an influx of new supply to come onto the market which could, along with global economic uncertainties created by Brexit, dampen demand in the second half year.

The Rating and Valuation Department’s monthly supplement released on Thursday showed the general price index for private homes rose to 275.5 in May, up 0.73 per cent from April.

The home rental index also edged up 0.49 per cent to 164.1 in May, from a month earlier.

Rating and Valuation Department data indicates flats larger than 1,000 sq ft registered the largest increase, with 1.08 per cent growth in May, while there was a 0.69 per cent rise for flats smaller than 430 sq ft.

On Thursday, Thomas Lam, the head of valuation and consultancy at Knight Frank, said transactions in the residential market could drop to fewer than 50,000 this year. “It will be the lowest in two decades,” he said.