Hong Kong’s lived-in home prices rose 1.6 per cent in February, marking the 11th straight month of positive movement for the residential property segment, as the city’s rents scaled another peak, according to official data.
Since reversing a downward trend in April, second-hand home prices had climbed nearly 8 per cent so far, bringing the official index to a 22-month high, according to data released on Friday by the Rating and Valuation Department.
The latest monthly increment was also larger than the 1.03 per cent increase in January.
The data do not yet reflect uncertainty over the direction of interest rates amid skyrocketing oil prices owing to the US-Israel war on Iran that began on February 28.
“Tensions in the Middle East have not had any immediate impact on the Hong Kong residential market,” said Eddie Kwok, executive director for valuation and advisory services at CBRE Hong Kong. “However, if the situation persists and oil prices continue to rise, thereby fuelling inflation and leading to an upward turn in interest rates, it would have a negative effect.”
Last week, the US Federal Reserve kept its target rate in the range of 3.5 per cent to 3.75 per cent, after the second meeting of the Federal Open Market Committee this year.
