A flat in Taikoo Shing in Hong Kong has fetched an average price that is higher than the earlier peak recorded in 1997, making it the city’s first housing estate to reach new record prices.
Based on data compiled by Centaline Property Agency, the average transaction price in the estate hit HK$8,436 psf in September, up 1.4 percent than the HK$8,316 psf average in July 1997.
“With average home prices in Taikoo Shing taking the lead, the rally will spread to other urban areas and even to the New Territories,” said Wong Leung-sing, an associate director in the research department at Centaline Property Agency.
Hong Kong Island has surpassed other areas in the city in terms of overall home prices, which are only 2.9 percent of their record levels in July 1997, based on the Centa-City Index, which records prices in the secondary market.
According to the Hong Kong Monetary Authority (HKMA), Hong Kong’s property prices had jumped by over 45 percent from a trough reached after the onset of the worldwide financial crisis in 2008.
HKMA also pointed out that average home prices in the luxury residential market were now 14 percent higher compared to the earlier peak set in Q3 1997. Meanwhile, prices in the mass residential market were now only 10 percent below the peak levels achieved before the 1997-1998 Asian financial crisis caused a slump in the market.