Hong Kong's February home prices rise for a second month, showing end of market correction

By Sandy Li sandy.li@scmp.com / https://www.scmp.com/business/article/3003758/correction-hong-kong-property-market-over-home-prices-rise-13-cent?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | April 1, 2019 6:37 PM SGT
Hong Kong home prices rose for a second consecutive month in February, providing further evidence that the property correction is over.
The overall price index of pre-owned homes increased at a much faster pace of 1.3 per cent to 365.2 in February, according to data from the city's Rating and Valuation Department.
In January, home prices edged up 0.25 per cent.
For the first two months of 2019, Hong Kong home prices have risen 1.6 per cent after having dropped by 9.2 per cent from August to December.
A straw poll conducted by the Post conducted between March 22 and 25 showed that more than half of market observers believe that the correction in home prices is over.
Thirteen out of the 23 respondents, including developers, analysts and economists, said they expected prices of new homes to rise by up to 15 per cent on the back of pent-up demand.
The rest, however, expected prices to fall further, by as much as 5 per cent, because of the uncertain global economic outlook.
Chan expects home prices to rise another 2 per cent in March, and then accelerate in the second quarter.
As of March 27, more than 4,700 new and pre-owned homes had been sold, up 9.5 per cent from 4,293 deals in the whole of February, according to data compiled by Midland Realty.
Ricacorp said average prices rose 1.8 per cent at 50 housing estates it tracked in February, with Central Park Towers in Tin Shui Wai seeing the steepest increase.
Transaction prices there grew 6.5 per cent to HK$11,714 per square foot, it said.
"The strong uptake of second-hand flats has spilled over into the primary market," said Chan, referring to a surge in confidence that has emerged from the US Federal Reserve's decision to delay interest rate rises and a rally in the stock market.
Buyers had snapped up 1,233 new flats as of March 27, compared with 1,660 in February.
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