Hong kong house prices rise to all-time high

Hong Kong residential prices climbed to an all-time high to close out 2014, according, according to government statistics from the Rating and Valuation Department.

The All Classes Territory-Wide price index indicated a growth of 11.8 per cent for the first 11 months of the year. In the luxury residential market, sales activity remained generally subdued throughout the year as stamp duties remained firmly in place. Despite slower demand, luxury residential prices have also continued to climb while some locations are still achieving record-breaking prices.

According to Cushman & Wakefield Research, luxury residential prices increased by 1.8 per cent in 2014. Values decreased mildly during the first half of 2014, but achieved price growth of 4.9 per cent in the second half of the year.
Cushman & Wakefield expects residential properties priced between HK$30 to HK$100 million to achieve price growth of 5 per cent in 2015, while properties priced above HK$100 million will see stable prices.

"Existing owners will continue to face minimal pressure to reduce asking prices due to their low holding cost and also more limited supply of luxury properties," forecasts the agency.