Tsang warns anew against asset bubbles

Financial Secretary John Tsang is again warning about the risk of asset bubbles since the global economy remains in turmoil.

Speaking before a bankers' forum, Tsang said Hong Kong, while relatively stable, should pay more attention to the difficulties faced by its major trading partners, especially the United States and Europe.

His warning comes shortly after the University of Hong Kong released its Hong Kong Residential Real Estate Series (HKU-REIS) indicating that the price of residential properties in June increased 1.2% from May and rose 6.6% year-on-year.

The data seems to indicate that after a retreat in late 2011, real estate prices are now soaring continuously with all indicators confirming monthly increases.

The HKU-REIS is a set of property price indices constructed monthly using a “modified” repeat-sale methodology similar to that of the S&P/Case-Shiller indices yet suited to the Hong Kong property market.