Hong Kong home prices rise to 28-month high as buyers shrug off Middle East war concerns
Prices of the city’s residential property rose by 1.4 per cent, showing strong resilience despite economic turbulence caused by the Iran war
The widely watched index released by the Rating and Valuation Department (RVD) stood at 312.8 last month, the highest since 315.6 in November 2023.
The increase reflected a sustained recovery that began 11 months ago, showing a cumulative price gain of nearly 9.2 per cent for the secondary residential property segment, according to the data. In the first quarter of this year alone, the index gained 4.4 per cent.
Residential rents, meanwhile, galloped to another all-time high, extending a run that began in February 2023, according to RVD data.
“While uncertainties surrounding the US-Iran conflict may cause oil prices to spike and keep interest rate fluctuations in focus, major banks have already begun raising property valuations in response to the warming market,” Tsang Bo-man, senior associate director of valuation and advisory services at Colliers Hong Kong, said.
“Coupled with strong rental demand bolstering the holding power of owners, we expect property prices to maintain a steady recovery.”
The latest data reflected the first full month of movement of the city’s second-hand home prices following the conflict that began with coordinated strikes on Tehran’s crucial government and military sites on February 28.