HK homes affordability crisis grows as prices soar to record high

Hong Kong

HONG Kong home prices surged to a record last year, making Chief Executive Leung Chun-ying's task of addressing the city's affordability crisis even harder.

The price index compiled by the government advanced 12 per cent for the first 11 months of 2014 to a record in November, led by smaller-sized units. Existing home prices tracked by Centaline Property Agency Ltd, the city's largest realtor, gained 11 per cent last year and reached an all-time high last month.

Mr Leung, who is due to give his policy address on Wednesday, is facing unprecedented pressure after pro-democracy protests last year also highlighted growing discontent among young people and first-time homebuyers over housing affordability. Rising home prices in the city last year contrast with those in Singapore and London, which have cooled as governments there imposed various curbs includin…