12-03-2011, 07:38 AM
Business Times - 12 Mar 2011
HK home prices soar to 13-year high
The 1.7% rise early this month raises concerns govt measures to curb property speculation aren't working
(Hong Kong)
HOME prices in Hong Kong rose to a 13-year high in the week ended March 6, raising concerns that government efforts to curb real estate speculation are not being effective.
The Centa-City Leading Index, compiled by Hong Kong's biggest closely held realtor, rose 1.7 per cent during the week to the highest since October 1997, Centaline Property Agency Ltd said yesterday. The index has risen for five straight weeks, Centaline said.
Hong Kong's government in November intensified a year-long battle to curb housing prices by imposing additional property transaction taxes and pledging to increase land supply for medium and small housing units.
Home prices have gained about 65 per cent in the past two years, fuelled by an economic recovery, record low mortgage rates and an influx of buyers from China.
'It just shows that any government intervention would be ineffective in the face of strong demand,' James Cheung, a surveyor at Centaline, said. 'With the way the economy has been growing, there are many people looking to upgrade to bigger apartments. There is just not enough supply in the market to meet this demand.'
The number of home sales in Hong Kong surged 30 per cent in February from the previous month, according to data from the city's Land Registry on March 2. The 10,390 sale-and-purchase agreements registered fetched a combined HK$45.6 billion (S$7.45 billion), a 37 per cent jump from January and 12 per cent more than a year ago, it said.
The city's government may auction as many as 52 plots of land this year, Hong Kong Financial Secretary John Tsang said in his Feb 23 budget speech. The land will provide for 16,000 units, an almost 80 per cent increase from last year.
The city is the world's most expensive place to buy a home because of a supply shortage, according to a study released by London-based Savills plc in January. Hong Kong's home market fundamentals are 'positive', Thomas Kwok, vice-chairman of Sun Hung Kai Properties Ltd, the city's biggest developer by value, said on Feb 28.
Home prices in the city fell more than 50 per cent after peaking in 1997 as the city slid into a recession following the Asian financial crisis.
The Hang Seng Property Index, which tracks seven developers in the city, declined 2.1 per cent at the 4pm local time close of trading, extending this year's drop to 3.8 per cent this year. -- Bloomberg
HK home prices soar to 13-year high
The 1.7% rise early this month raises concerns govt measures to curb property speculation aren't working
(Hong Kong)
HOME prices in Hong Kong rose to a 13-year high in the week ended March 6, raising concerns that government efforts to curb real estate speculation are not being effective.
The Centa-City Leading Index, compiled by Hong Kong's biggest closely held realtor, rose 1.7 per cent during the week to the highest since October 1997, Centaline Property Agency Ltd said yesterday. The index has risen for five straight weeks, Centaline said.
Hong Kong's government in November intensified a year-long battle to curb housing prices by imposing additional property transaction taxes and pledging to increase land supply for medium and small housing units.
Home prices have gained about 65 per cent in the past two years, fuelled by an economic recovery, record low mortgage rates and an influx of buyers from China.
'It just shows that any government intervention would be ineffective in the face of strong demand,' James Cheung, a surveyor at Centaline, said. 'With the way the economy has been growing, there are many people looking to upgrade to bigger apartments. There is just not enough supply in the market to meet this demand.'
The number of home sales in Hong Kong surged 30 per cent in February from the previous month, according to data from the city's Land Registry on March 2. The 10,390 sale-and-purchase agreements registered fetched a combined HK$45.6 billion (S$7.45 billion), a 37 per cent jump from January and 12 per cent more than a year ago, it said.
The city's government may auction as many as 52 plots of land this year, Hong Kong Financial Secretary John Tsang said in his Feb 23 budget speech. The land will provide for 16,000 units, an almost 80 per cent increase from last year.
The city is the world's most expensive place to buy a home because of a supply shortage, according to a study released by London-based Savills plc in January. Hong Kong's home market fundamentals are 'positive', Thomas Kwok, vice-chairman of Sun Hung Kai Properties Ltd, the city's biggest developer by value, said on Feb 28.
Home prices in the city fell more than 50 per cent after peaking in 1997 as the city slid into a recession following the Asian financial crisis.
The Hang Seng Property Index, which tracks seven developers in the city, declined 2.1 per cent at the 4pm local time close of trading, extending this year's drop to 3.8 per cent this year. -- Bloomberg