Hong Kong property prices hit new peak ahead of policy address

Hong Kong home prices have reached fresh highs ahead of Chief Executive Leung Chun-ying's third policy address on Wednesday.

Centaline Property Agency's Centa-City Leading Index, which reflects average prices in the secondary housing market, rose 0.67 per cent week on week to 133.34.

Mass housing prices in the western New Territories reported an accumulative rise of 2.95 per cent over the past two weeks, according to Centaline. The property agency expects a new round of price increases.

BNP Paribas Securities (Asia) said 379 first-hand units were sold last weekend, 7.7 per cent higher than the 352 units sold over the previous weekend.

In the secondary market, 18 units were sold at the 10 largest residential estates tracked by Centaline over the weekend, 5.9 per cent higher than the 17 units sold the previous weekend.

Sun Hung Kai Properties launched the second batch of Century Link in Tung Chung last Saturday, receiving 13,071 deposit cheques and selling all 320 units.

Patrick Wong, a director of property research at BNP, said that while Leung's policy address was expected to focus on releasing more land, this was unlikely to have any impact on the completion of new units over the next few years.