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Wednesday, August 31, 2016, 18:35

Home prices rebound sharply in July

By Oswald Chan in Hong Kong

HONG KONG - Hong Kong home prices rebounded sharply in July – indicating the city’s property market has bottomed out and is poised to rebound further in the rest of the year.

The price index of private domestic residential units rose to 281.4 in July, representing a monthly gain of 1.9 percent compared to the 0.2 percent increase in June, according to Rating and Valuation Department (RVD) data released on Wednesday.

On a yearly basis, local home prices still dived 7.5 percent last month but the pace of the decrease has narrowed compared to the 8.3 percent decrease in June.

In the first seven months of this year, local home prices have contracted 1.3 percent cumulatively and were 8 percent lower compared to the historical peak level recorded in September 2015.

"Local home prices have bottomed out and are moving in tandem with the general trend of the economy,” said Wong Leung-shing, senior associate research director at Centaline Property Agency.

"We anticipate home prices will remain on the upside in the remainder period of this year with the greatest hike being registered in July and August,” Wong noted, adding that the Hong Kong government may introduce more tightening measures if home prices rise above the peak level registered last September.

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