Hong Kong home prices rise at fastest pace in 13 months in May

HONG KONG (REUTERS) – Hong Kong private home prices gained 1.9 per cent in May, their fastest pace of growth in more than a year, helped by low interest rates and pent up demand as the economy gradually picked up after the Covid-19 outbreak.

May’s gain comes after April’s revised 0.1 per cent fall, government data showed on Tuesday (June 30).

Home transaction volumes continued to recover in June, set to reach the highest since May 2019, realtor Centaline said.

But property agents do not expect a strong pick up in prices through the end of 2020 as a weak economy and political tensions weigh on one of the world’s most expensive property markets.

Bankruptcy filings in the city rose to a 17-year high in May, as the coronavirus pandemic dealt a heavy blow to businesses following months of social unrest.

China’s plan to impose national security law in Hong Kong as early as Tuesday has sparked a fresh round of escape plans among residents, but the local home market has so far been largely resilient.

In the luxury home segment, property consultancy JLL said momentum built up in May after a muted period since Christmas, with the number of transactions valued over HK$50 million (S$8.99 million) rising 61 per cent from April.

It attributed the recovery to monetary easing in most regions and the stabilisation of Covid-19 across Greater China.

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