HONG KONG: New home prices in Hong Kong climbed to a one-year high in October, rising 2.6 per cent from September, according to data released by the Rating and Valuation Department on Wednesday.
The monthly price index for private homes was at 303.8 last month, just 0.75 per cent below their peak in September last year.
Thomas Lam, senior director at Knight Frank, said he now expects to see slower price growth over the next several months due to the introduction of new stamp duties earlier this month.
And for the full year, he now expects to see a 2-3 per cent fall in home prices from their peak in September last year.
“Luxury home sales in the secondary residential market have been frozen by the rising property tax. Sales will be dominated by the primary market as developers are providing tax subsidies to drum up buying interest,” he said.
The government raised the stamp duty on residential transactions to 15 per cent in November 5, for non-first-time individual and corporate buyers, in a bid to tame runaway home prices.
Meanwhile, the rental index in October rose 0.64 per cent to 172.5, according to government data.
