Hong Kong private home prices rose 13th consecutive month in June to 12.7 percent

Hong Kong’s private home prices rose for the 13th consecutive month in June to 12.7 percent year on year, marking a new high in two and a half years, according to data from the Rating and Valuation Department released on Wednesday.

The month-on-month private home price increase slowed to 0.3 percent. In the first half of the year, Hong Kong property prices climbed 7.9 percent, to stand at their highest since September 2023.

Small and medium-sized units rose nearly 0.3 percent month on month in June and 12.9 percent year on year. In the first half of the year, the index rose 7.9 percent. For units of about 1,076 square feet or above, prices increased 1 percent month on month and 10 percent year on year, and accumulated a rise of 6.6 percent in the first half of the year.

The private residential rental index reached 205.8 in June, hitting a new record high, with a month on month increase of 0.9 percent, marking eight consecutive months of growth, and a year on year increase of around 5 percent. Rental prices rose 2.6 percent in the first half of the year.

Realtors said short-term consolidation in the housing market was likely after rising since June last year, with buying demand facing the combined headwinds of stock market correction and China's tighter curbs on outbound investment.

Hong Kong's property market, one of the world's least affordable has been supported by positive market sentiment, buoyant stock markets, firm demand from a growing number of mainland Chinese professionals and an easing oversupply.

Residential prices in the Asian financial hub posted their first increase last year since they peaked in 2021. Since then, home prices tumbled nearly 30 percent.

Reuters and staff reporter

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