Sept 30 Hong Kong private home prices touched
their highest level in nine months after climbing for five
consecutive months, according to government data released on
Friday, even as a recent official report warned the property
outlook has become more uncertain.
Home prices rose 1.91 percent to 287.4 points compared with
a month ago on a government index compiled by the Rating and
Valuation Department. The figure dropped 5.86 percent
year-on-year, and was 6.11 percent lower than the historic high
hit in September 2015.
Hong Kong's real estate is among the most expensive in the
world. One of the city's largest property agencies, Centaline
Property Agency Ltd, has forecasted home prices to return to
peak levels in the fourth quarter this year.
While the residential property market has stabilised since
the April-June quarter, the outlook has become less certain due
to factors including slower domestic growth and uncertainty from
Brexit, according to the Hong Kong Monetary Authority's
Half-Yearly Monetary and Financial Stability Report released on
Should the U.S. Federal Reserve hike interest rates later in
the year, this could further weigh on the market given the local
currency's peg to the U.S. dollar.
"On one hand, while market expectation of still-abundant
global liquidity could provide some support to the housing
market, the uncertainty surrounding the pace and effect of the
U.S. rate hike will continue to pose headwinds," the report
Rental prices also increased by 0.84 percent for the fourth
Hong Kong is ranked sixth in the recently released UBS
Global Real Estate Bubble Index, which assesses the risk of
housing bubbles in 18 financial hubs.
(Reporting by Venus Wu and Joy Leung; Editing by Sherry