HK Q2 luxury home prices up 3.8%

Luxury residential prices and rents in Hong Kong rose to a new high in the second quarter of the year due to tight supply and strong demand from mainland Chinese buyers, according to a report by Colliers International.

Overall luxury residential prices rose by 3.8 per cent on a quarterly basis to a record of HK$19,520 (S$3,024) per sq ft in the three-month period ended May, surpassing the previous peak in mid-2008 by 30 per cent, Colliers said in The Knowledge research and forecast report on the Hong Kong residential market.

The average monthly rental for luxury residences rose by 4.1 per cent quarter-on-quarter to a record of HK$47.30 per sq ft in the second quarter.

The luxury segment was buoyant, with transactions of homes that sold for more than HK$20 million rising by 11 per cent quarter-on-quarter, even as sales in the overall residential market slowed down.

Colliers attributed the broad market slowdown to rising mortgage rates, further lowering in the loan-to-value ratio and growing concerns over the relaunch of the Home Ownership Scheme, which provides subsidised homes for low-income earners.

Source : Today – 26 Jul 2011

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