Hong Kong private home prices hit record high for 12th straight month

Property prices in Hong Kong have been shooting up since April 2016 partly due to a supply and demand imbalance.
Property prices in Hong Kong have been shooting up since April 2016 partly due to a supply and demand imbalance.PHOTO: REUTERS

HONG KONG (REUTERS) - Hong Kong private home prices edged up for the 12th straight month in October, extending a record-breaking run of consecutive monthly gains and adding to home ownership constraints in one of the world's most expensive property markets.

Private home prices in October rose 0.53 per cent from September, according to an index compiled by the Rating and Valuation Department released on Thursday (Nov 30). The index climbed 12.5 per cent year-on-year.

Property prices have been shooting up since April 2016 partly due to a supply and demand imbalance. The city's leader, Carrie Lam, has pledged to rein that in by increasing land supply where possible.

"Property prices are high, it's unaffordable for most ordinary people. This poses a certain risk to the residential property market," said Thomas Lam, a senior director at property consultancy Knight Frank.

"In the long-term, high property prices will affect the city's sustainable development and social stability." The former British colony, which maintains a separate economic and legal system from mainland China under a "one country, two systems" arrangement, is the world's most expensive city for apartments, according to a UBS report.