BT: HK luxury home prices may rise 10% in 12 months

Published December 10, 2009

HK luxury home prices may rise 10% in 12 months

(HONG KONG) Luxury home prices in Hong Kong may rise by 10 per cent in the next 12 months as low interest rates and limited supply fuel demand, Colliers International Ltd said.


Hong Kong home prices have risen 28 per cent this year, according to the weekly Centa-City Leading Index, recovering faster than London and New York on mainland Chinese buyers and record-low mortgage rates. Luxury housing has outperformed the overall property market, according to Colliers, a global real-estate broker and manager.

'Prospective purchasers are mainly buyers coming from mainland China, 40 per cent of the total, followed evenly by upgraders, expatriates, industrialists and investors,' Ricky Poon, Colliers' executive director of residential sales, said in an e-mailed statement today.

Sales of homes worth more than HK$10 million (S$1.79 million) each jumped 44 per cent to 1,231 transactions in the first 11 months of this year from the same period in 2008, and prices rose 40 per cent on the same basis, the statement said.

Homes worth more than HK$10 million or that are larger than 1,000 sq ft are classed as luxury residences in Hong Kong. -- Bloomberg