Hong Kong home prices hit 20-month high

Hong Kong

HONG Kong's private home prices, which are among the world's least affordable, climbed to their highest level since July 2019 in March, official data showed on Wednesday, supported by robust demand and a recovering economy.

The prices gained for the third month in a row in March, rising 0.8 per cent, the data showed, compared with a revised 0.86 per cent increase in February.

The March price index stood at 388.3, 2.2 per cent lower than the historical high of 396.9 in May 2019.

Hong Kong's residential property market, which has a serious supply shortage, remained resilient last year, despite the pandemic and anti-government protests.

A report from think-tanks Urban Reform Institute and Frontier Centre for Public Policy ranked Hong Kong the world's least affordable housing market for the 11th straight year in 2020, based on median property prices and household incomes.

Property agent Centaline said transaction volumes in the secondary market in April were expected to be the highest in eight years with values at a 23-year high.

Sentiment in the market started improving early this year thanks to new vaccines, and buyers expect home prices could pick up after borders reopen with mainland China.

Mainland Chinese bought 40 per cent more residential properties in Hong Kong in the first two months of 2021 than a year ago, said realtor Midland. REUTERS