The rising trend of residential prices continued for the first eight months of 2013 but started to subside in the fourth quarter, resulting in an overall year-on-year increase of 9% as compared to the fourth quarter of 2012. Rents however maintained a steady growth throughout 2013.
Source: The Standard Finance
The local home market cooled further in February when prices slipped to an eight-month low on uncertainties about future interest-rate hikes.
Overall, flat prices eased 0.25 percent from January, data out yesterday from the Rating and Valuation showed. Prices also fell in January versus December.
But compared to a year earlier, prices were up 1.7 percent in February. Luxury and larger flats saw bigger falls from January, particularly those sized 1,076-1,722 square feet which plunged by around 1.16 percent. Prices for small and mid-size flats fell 0.43 percent and 0.64 percent, respectively.
Rents also slid, by 0.5 percent from January to a nine-month low, led by declines for units sized less than 400 sq ft. But Citibank said local home prices would not fall too much as completion of new flats had peaked this year.
The government said last week that 17,600 new flats would be completed this year – a 10-year high.
Sun Hung Kai Properties (0016.HK) deputy managing director Victor Lui Ting said prices of the first batch of 50 flats at the 144-unit Mount One in Fan Ling will be released this week.