Hong Kong private home prices rise 1.9% in May, fastest pace in over a year

Residential buildings in Aberdeen Harbour, Hong Kong. Gains in home prices were helped by low interest rates and pent-up demand as the economy gradually picked up after the Covid-19 outbreak. PHOTO: AGENCE FRANCE-PRESSE
Residential buildings in Aberdeen Harbour, Hong Kong. Gains in home prices were helped by low interest rates and pent-up demand as the economy gradually picked up after the Covid-19 outbreak. PHOTO: AGENCE FRANCE-PRESSE

HONG KONG • Hong Kong private home prices gained 1.9 per cent in May, their fastest pace of growth in more than a year, helped by low interest rates and pent-up demand as the economy gradually picked up after the Covid-19 outbreak.

May's gain comes after April's revised 0.1 per cent fall, government data showed yesterday.

Home transaction volumes continued to recover last month, set to reach the highest since May last year, realtor Centaline said.

But property agents do not expect a strong pick-up in prices to the end of this year as a weak economy and political tensions weigh on one of the world's most expensive property markets.

Bankruptcy filings in the city rose to a 17-year high in May, as the pandemic dealt a heavy blow to businesses after months of social unrest.

China's plan to impose national security law in Hong Kong has sparked a fresh round of escape plans among residents, but the local home market has so far been largely resilient.

In the luxury home segment, property consultancy JLL said momentum built up in May after a muted period since Christmas, with the number of transactions valued over HK$50 million (S$9 million) rising 61 per cent from April.

China's plan to impose national security law in Hong Kong sparked a fresh round of escape plans among residents, but the local home market has so far been largely resilient.

It attributed the recovery to monetary easing in most regions and the stabilisation of Covid-19 across Greater China.

REUTERS

 
 
 
A version of this article appeared in the print edition of The Straits Times on July 01, 2020, with the headline 'Hong Kong private home prices rise 1.9% in May, fastest pace in over a year'. Print Edition | Subscribe