Hong Kong home prices rise for 25th straight month as record-breaking deals keep coming
Buyers afraid flats will get even more pricey if they don’t act now, say analysts, as small flats lead the gains in April
The prices of lived-in homes in Hong Kong gained for a 25th straight month as the world’s most expensive property market shrugged off concerns about increased supply and an imminent rise in interest rates.
Flats at the smaller end of the spectrum saw the greatest price gains as flats in major housing estates sold at record prices.
An index of secondary-market home prices climbed 1.84 per cent to 375.9 in April, according to data released by the government’s Rating and Valuation Department on Thursday. That is faster than the 1.15 per cent gain in March.
The rental index advanced 0.42 per cent to 190.3, indicating an increase in leasing costs, the figures showed.
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“Buyers are willing to chase after higher prices. They worry that flats will become more expensive if they do not act now,” said Derek Chan, head of research at Ricacorp Properties. “That explains why more homes have sold at record prices.”