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PR Newswire
28-10-2010, 07:40 AM
Oct 28, 2010
HK luxury home prices surge past 1997 peak
HONG KONG: Hong Kong's luxury home prices have topped their pre-Asian crisis peak, data showed yesterday, frustrating government efforts to cool one of the world's most expensive real estate markets.
Average prices for homes of at least 100 sq m are now 14 per cent above what they fetched before the 1997 downturn, the Hong Kong Monetary Authority (HKMA) said.
The data comes amid fears of a property bubble in the densely populated city of seven million and has led some lawmakers to call for a resumption of a subsidised housing scheme due to concerns about the city's growing income gap.
Government figures show average luxury home prices in August were HK$142,249 (S$23,755) per square metre, compared with around HK$122,500 before the 1997 crisis. Overall, home prices plunged about 60 per cent during the Asian crisis.
However, the cost of a home has soared more than 45 per cent from the trough two years ago, prompting the government to hold about half a dozen sales in the past year to boost supply. The sales sparked huge interest, with tycoon Li Ka Shing snapping up two prime residential sites for about HK$7.61 billion in August.
Earlier this month, Chief Executive Donald Tsang outlined fresh measures to cool the property market, including halting automatic residency for rich property buyers. The move is expected to affect wealthy mainland Chinese investors.
Rising non-luxury flat prices have put home ownership out of reach for many residents. Hong Kong has surpassed New York, Paris and Tokyo as one of the most expensive cities in the world in which to buy a flat, said the Global Property Guide website.
It added that Hong Kong is the third most expensive city to buy a 120 sq m apartment, with Monaco as the most expensive and London second.
AGENCE FRANCE-PRESSE
HK luxury home prices surge past 1997 peak
HONG KONG: Hong Kong's luxury home prices have topped their pre-Asian crisis peak, data showed yesterday, frustrating government efforts to cool one of the world's most expensive real estate markets.
Average prices for homes of at least 100 sq m are now 14 per cent above what they fetched before the 1997 downturn, the Hong Kong Monetary Authority (HKMA) said.
The data comes amid fears of a property bubble in the densely populated city of seven million and has led some lawmakers to call for a resumption of a subsidised housing scheme due to concerns about the city's growing income gap.
Government figures show average luxury home prices in August were HK$142,249 (S$23,755) per square metre, compared with around HK$122,500 before the 1997 crisis. Overall, home prices plunged about 60 per cent during the Asian crisis.
However, the cost of a home has soared more than 45 per cent from the trough two years ago, prompting the government to hold about half a dozen sales in the past year to boost supply. The sales sparked huge interest, with tycoon Li Ka Shing snapping up two prime residential sites for about HK$7.61 billion in August.
Earlier this month, Chief Executive Donald Tsang outlined fresh measures to cool the property market, including halting automatic residency for rich property buyers. The move is expected to affect wealthy mainland Chinese investors.
Rising non-luxury flat prices have put home ownership out of reach for many residents. Hong Kong has surpassed New York, Paris and Tokyo as one of the most expensive cities in the world in which to buy a flat, said the Global Property Guide website.
It added that Hong Kong is the third most expensive city to buy a 120 sq m apartment, with Monaco as the most expensive and London second.
AGENCE FRANCE-PRESSE
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