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Friday, October 7, 2016, 17:42

HK weekly home prices surge by the most in 7 years

By Bloomberg

HONG KONG - Hong Kong secondary home prices surged by the most in seven years for the week ended Oct 2, rising 2.5 percent, according to the Centaline Property Agency website.

The Centaline-City Leading Index, which measures transactions in the secondary market and doesn’t include sales of new homes, is now 4 percent down from its historical high reached in September of last year. Prices have rebounded from a low point in March.

Hong Kong residential property prices have rebounded from a six-month slump when they fell 13.3 percent from a record high in September 2015. Transaction volumes have also rebounded, with 7,826 properties changing hands in September, the highest level in at least 15 months.

Renewed demand from Chinese mainland buyers looking for offshore assets is helping drive sales at Wheelock Properties (Hong Kong) Ltd’s Hong Kong housing projects. Mainland buyers accounted for nearly 20 percent of September sales at its Kowloon development One Homantin, compared with about five percent when it launched six months ago, the firm said.

In a sign of optimistic market sentiment, Kerry Properties Ltd earlier this week paid the highest price for a parcel of government land in three-and-a-half years. The developer outbid Hong Kong giants Cheung Kong Property Holdings Ltd and Sun Hung Kai Properties Ltd with a HK$7.3 billion ($940 million) offer for land in the territory’s Kowloon district.

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