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Hong Kong home prices in August hit record high, growth slows

Residential buildings stand in the Lai Chi Kok district of Hong Kong, China, on Friday, Jan. 9, 2015.

[HONG KONG] Hong Kong's home prices rose for a fifth consecutive month to hit a record high in August, official data showed, overcoming concerns an expected interest rate hike in the United States may dampen demand in one of the world's most expensive property markets.

An official index of overall private home prices for August edged up 1.1 percentage points month-on-month to 305 points. That's 16.8 per cent higher than the year before and a fifth straight monthly gain.

The monthly gain, however, was the smallest in five months.

The data came weeks after Hong Kong Financial Secretary John Tsang warned of a correction in the city's red-hot property market due to a possible interest rate hike by the US Federal Reserve, and an expected surge in housing supply in the fourth quarter.

Hong Kong's home prices have jumped more than 170 per cent since 2008 due to low interest rates and a supply shortage, shrugging off a series of government cooling measures including a 15 per cent tax on foreign buyers.