Hong Kong home prices set yet another record high

HK home prices are now 8% higher than the 1997 peak.

According to Nomura Research, HK home prices rose for the third consecutive week and set yet another record high.

The CCL home price index rose 0.88% w-w to 111.11. HK home prices are now up 16.4% YTD and are 8% higher than the 1997 peak.

Across the territories, last week’s price surge was led by homes in Kowloon (+2.8% w-w). NT East and West increased by 1.0% and 0.9% w-w, respectively, while HK Island prices fell 2% w-w.

Nomura notes that despite the tightened LTV and DSR for second homes by the HKMA, home prices have shown no sign of cooling. 

Mr Norman Chan, HKMA Chief, indicated that the third round of QE by the US Federal Reserve has not yet set off an influx of hot money into the Hong Kong property market. However, it is difficult to pull back home prices given the shortage of land supply. The HKMA is closely watching the property market and would take action
when needed. 

The Secretary for Transport and Housing, Mr Anthony Cheung has also warned of the risk of rising bubbles in the housing market, saying that Hong Kong's property market is in a "strange and worrying" state that home prices have been increasing while the economy has not been booming.