Hong Kong by Jonathan Leung
Home prices in Hong Kong soared to a record high, the 7th consecutive month it has been rising. The overall private home prices index inched up another 3.7% month-on-month to 274 points.
According to government data, home prices rose 12% for the first 11 months of 2014.
The report came just days after Sun Hung Kai Properties, the city's largest developer, sold 300 small and medium-sized units of between HK$4M to HK$7M, within 9 hours of launch.
Despite the 2009 property cooling measures and the doubling of stamp duty on residential purchases, pent-up demand for smaller units continued to drive up sales in one of the world's most expensive property markets. Analysts expect the trend to continue in 2015, as developers continue to draw buyers, not affected by the measures, with discounts.
Since 2008, Hong Kong home prices have surged about 120% owing to an environment of low interest rates, supply shortfall and flushed liquidity. According to Centaline Property Agency, the total value of Hong Kong private new homes transactions in 2014 was at their highest since it first started keeping records on them in 1996.
How will the Hong Kong property market pan out in 2015?
Developers will keep giving discounts and incentives to capture end-user demand and that will see home prices edge up another 3 to 5 percent this year, forecast Joanne Lee, Colliers International (HK).