Hong Kong saw home prices increase for the fifth consecutive month to reach a record high in August, overcoming concerns that an expected interest rate hike in the US may soften demand in one of the most expensive property markets in the world, reported Reuters.
According to official data, private home prices in Hong Kong climbed 1.1 percentage points month-on-month in August to 305 points. This figure is 16.8 percent higher than the previous year, and a fifth straight monthly gain. However, it was the smallest gain recorded in five months.
Hong Kong Financial Secretary John Tsang had earlier warned of a correction in the red-hot property market due to an expected increase in housing supply in the fourth quarter, and the possible interest rate hike by the US Federal Reserve.
Notably, home prices in Hong Kong have soared by more than 170 percent since 2008, due to a supply shortage and low interest rates, effectively nullifying a series of cooling measures introduced by the government, which include a 15 percent tax on foreign buyers.
Cheryl Marie Tay, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email cheryl@propertyguru.com.sg
