Hong Kong home prices rise 0.9% in Feb; fastest pace in 9 months

HONG KONG: Hong Kong private home prices rose 0.9% in February from the previous month, their fastest pace of growth since May, official data showed on Monday, supported by improved sentiment that new coronavirus vaccines will speed up the economic recovery.

The gain in the most unaffordable property market in the world last month compared with a revised 0.2% increase in January.

Driven by robust demand and low interest rates, transaction volume in the secondary market in March is expected to reach an over eight-year high, estimated by realtor Centaline, while first quarter volume could rise to a six-year high.

Property consultancy Cushman & Wakefield said earlier this month it expects home prices to rise 5% quarter-to-quarter in April-June.

It said the market has bottomed out in the first quarter, thanks to the early arrival of new vaccines, strong pent-up demand and booming stock market.

But high unemployment would weigh on the market in the mid term, the consultancy added.

Hong Kong's seasonally adjusted unemployment rose to 7.2% in the December-February period, the highest since 2004.