Hong Kong’s lived-in home prices rose for a fourth consecutive month to a seven-month high in July, indicating the city’s residential property market may have turned a corner.
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A widely watched official index of secondary home prices gained 0.42 per cent month on month to 387.9 in July, according to data from the Rating and Valuation Department on Wednesday. It was the index’s highest level since 289.2 in December.
Secondary home prices have increased 1.05 per cent since April, narrowing this year’s price decline to 0.45 per cent.
“Signs of residential prices bottoming out are becoming more evident,” said Eddie Kwok, executive director for valuation and advisory services at CBRE Hong Kong.
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He added that while new-home inventories were at a relatively high level, developers have been able to offload more than 1,600 units a month since February. “The consistent pick up in primary sales is easing inventory pressure among developers,” he said.
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The increase in property prices has been supported by lower interest rates in recent months, with the one-month Hong Kong interbank offered rate (Hibor) – linked to mortgages – hovering at around 1 per cent, according to data from the Hong Kong Association of Banks.