And it’s poised to rise by as much as 10% in 2018.
In a city with a track record of housing unaffordability, the value of residential properties have no other option but to go up and nowhere is this truer than in Hong Kong as home prices rose for the 14th month in a row to 1.41% MoM in December.
According to property statistics from the Ratings and Valuation department, the cumulative value for residential properties rose 16.7% in 2017 which extends the steep residential price which began in April 2016.
Rents also rose for the 10th straight month in December after rising 7.89% in December and posting a cumulative growth figure of 8.56% in 2017.
Analysts warn that home prices in Hong Kong’s heated residential market will continue their steep climb in 2018 amidst a supply-demand imbalance.
“In 2018, the overall residential price should increase by 8-10%. Residential prices should increase moderately in 2019, and should go flat in 2020 as a result of increasing supply and interest rates,” according to Colliers Quarterly Hong Kong residential report.
Photo from Mk2010 - Own work, CC BY-SA 4.0
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