Hong Kong home prices insistent with their tug-of-war

CCL dropped by 0.7%.

According to Barclays, after edging up 0.2% w/w in the previous week, the Centa-City Leading (CCL) Index pulled back by 0.7% w/w.

At 119.53, the index took the year-to-date gain to 3.2% and is 3.3% lower than the intra-year peak in March 2013.

Here's more from Barclays:

By regions, home prices fell across the most districts with Hong Kong Island -2.9% w/w, New Territories West -1.1% w/w and New Territories East -0.8% w/w.

Only Kowloon saw home price increase with +1.1% w/w gain. Furthermore, the private home price index published by the Rating and Valuation Department fell for two successive months.

For the month of October, the index fell 0.04% m/m to 245.4 and narrowed the YTD gain to 7.8%. As we expected, while the R&V and CCL home price indices sometimes diverge, over time they do tend to track each other.

We expect the R&V data to pull back more in the months to come and narrow the gap with CCL’s 3.2% YTD gain.