Home prices up for 27th consecutive month in June but growth slows

A secondary-market home price index rose 1.644% in June.

Hong Kong home prices maintained their heated uptrend but climbed at a noticeably slower pace with an index of secondary-market home prices rising 1.644% to 389.4 in June, according to data from the Rating and Valuation department. 

Also read: Hong Kong's property market shows signs of cooling down

This figure represents a slower pace of growth than the 1.86% increase recorded in April and 1.645% in May.

Rental costs, however, picked up from 0.3% in May to 1.2% in June.

Prices of flats measuring less than 430 square feet inched 1.58% to 429.7 on the index whilst units of 1,722 sq ft or more edged up by a mere 1.27% to 334.4.

Also read: Developers slash unsold home prices as vacancy tax kicks in

The number of primary transactions in the past weekend have also plunged 80% YoY with units from Victoria Harbour and St Martin accounting for the bulk of sold flats, according to an earlier report from UOB Kay Hian. Secondary market sales volume also fell by half on a week-on-week basis to 4 transactions recorded in 10 major estates.

The move comes after the government rolled out a series of policy initiatives including a tax on vacant properties to cool down runaway home prices in the world's least affordable housing market.