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Hong Kong home prices start to lose steam as price growth slows for second straight month in June

Runaway home prices in the world’s most expensive city to buy property rises for 27 months in a row in June

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Property prices in Hong Kong are showing no signs of letting up. Photo: Fung Chang
Pearl Liu

The prices of lived-in homes in Hong Kong gained for a 27th straight month in June, but the rate of increase slowed down for a second straight month.

An index of secondary-market home prices rose 6.3 points, or 1.644 per cent, to 389.4 in June, according to data released by the Rating and Valuation Department on Tuesday – a bit slower than the 1.645 per cent gain in May, and 1.86 per cent increase in April.

Prices of flats measuring less than 430 square feet gained 1.58 per cent to 429.7 on the index.

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Flats of 1,722 sq ft or more increased by just 1.27 per cent to 334.4.

The rental index meanwhile surged by 1.2 per cent to 193.7, much faster than the 0.3 per cent increase in May, reflecting an accelerated increase in leasing costs, the data showed.

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Analysts expect home price growth to further slow down in the coming months because of a slew of government measures announced recently to ease the housing crisis in Hong Kong, the world’s most expensive place to own property.

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