HONG KONG, March 27 (Reuters) - Private home prices in Hong Kong rose 1.6% in February, marking a ninth consecutive month of increase, as improved sentiment supported the housing market.
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Home prices climbed 1.6% in February from January, after a revised 1% rise in the previous month, data from the Rating and Valuation Department showed on Friday.
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Realtors projected that prices will rise 3%-10% this year, while brokerage analysts forecast gains of at least 10%, citing a resilient stock market, strong demand from mainland Chinese buyers and lower inventory.
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Demand for home buying in Hong Kong, among the world's least affordable cities, improved in the past couple years partly due to softening interest rates.
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"However, if the (Middle East) 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 on the local property market," said Eddie Kwok, executive director, CBRE.
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Residential prices in the financial city climbed 3.6% in 2025, the first increase since they peaked in 2021.
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Prices have tumbled nearly 30% over the past five years, weighed down by higher mortgage rates, subdued economic prospects and reduced demand as strict COVID-19 policies and national security laws prompted an exodus of professionals.
Reporting by Clare Jim; Editing by Sherry Jacob-Phillips
Source: Reuters