Hong Kong’s lived-in home prices hit new high as economy rebounds from social unrest, coronavirus, according to Centaline Property index

The Centa-City Leading Index hit 191.34 in the first week of August, marginally higher than the high of 190.48 in June 2019 when civil unrest first broke out

Recovery is being fuelled by low interest rates making mortgage repayments manageable, say analysts

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The closely watched Centa-City Leading Index (CCL) has broken the previous record set two years ago as the economy recovers and coronavirus cases subside. Photo: Martin Chan

Published: 9:00am, 14 Aug 2021Updated: 9:00am, 14 Aug 2021

The first sign that Hong Kong home prices have reached new highs has emerged.

The closely watched Centa-City Leading Index (CCL) has broken the previous record set two years ago as the economy recovers and coronavirus cases subside.

The gauge of lived-in homes compiled by Centaline Property Agency stretched a three-week rally to hit 191.34 in the first week of August, according to data released on Friday. That is marginally higher than the high of 190.48 in June 2019, when the social unrest that went on to wreak havoc on Hong Kong’s economy first broke out.

“Under the low interest-rate environment, it is easy for home prices to rise but not fall,” said Louis Chan, Asia-Pacific vice-chairman and chief executive of the residential division at Centaline.

The mortgage rate, currently at about 2.5 per cent, means homeowners’ repayment burden is 70 per cent lower than it was in 1997, the height of the property market boom, he said.

Chan said the easing of the coronavirus pandemic locally had driven domestic consumption, which in turn had boosted the economy and the housing market.

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