Prices of Hong Kong’s second-hand homes have increased for the first time in almost a year as the recent removal of cooling measures gave a much-needed boost to the beleaguered property market.
The average price of a lived-in unit rose by 1.06 per cent in March, according to official data, the first gain in 11 months. The index climbed to 305.7 from 302. 5 the previous month, according to the Rating and Valuation Department (RVD). The increase was broad-based, with all sizes of house seeing a gain. Prices are still down 13.2 per cent from a year ago and 23 per cent from an all-time high in September 2019. So far this year, they have slipped by about 1.8 per cent. The data released on Friday was the first set of monthly figures for the secondary market since all restrictions on buying were scrapped on February 28.
“After the complete withdrawal of property cooling measures, the market’s conditions changed,” said Derek Chan, head of research at Ricacorp Properties. “Different types of users and investor have actively entered the market.”
Another 1 per cent rise is likely in April, followed by increments of 1.2 per cent and 1.5 per cent in May and June, he predicted.
