Home prices break records for 13th straight months

HONG KONG: Private home prices broke historic records for the 13th straight month in November, with the ascent showing no signs of ending and analysts expecting the rise to continue into next year.

Private home prices rose by 1.08 per cent in November, marking the fastest pace of growth in six months, data compiled by the Rating and Valuation Department showed.

The index, which began its climb in April 2016, surged 13.1 per cent year-on-year.

The city’s flats are ranked the second most expensive in the world after Monaco, according to data from property consultancy Knight Frank, which shows US$1 million (RM4.06 million) would only buy 200 sq ft of prime property, here, as opposed to 270 sq ft in New York or 320 in London.

“Property prices are high and it’s unaffordable for most ordinary people,” said Knight Frank senior director Thomas Lam

“But right now, I cannot see any major factor that will bring down property prices in the short run.”

Hong Kong leader Carrie Lam said the government “has no ways to curb property prices,” adding while she would do her best to seek more land to boost supply, she has never promised to turn around the price rise.

Major property consultancies expect Hong Kong’s housing market to remain feverish in the coming year and climb a further five to 20 per cent. Reuters