Home Prices Slip Again To Lowest In Almost 4 Years

Government data released on Thursday showed that home prices in Hong Kong reached their lowest level in almost four years last month, continuing a recent decline.

The official home price index, which measures prices in the secondary market, dropped 2.1 percent month-on-month in September, widening from the 1.9 percent decline recorded in August.

Compared to a year ago, prices were down nine percent.

The fall in prices was lower among larger homes. Flats measuring less than 1,075.3 square feet saw a month-on-month price decline of 2.1 percent, while prices for those larger than that size slipped 0.3 percent.

In September, Hong Kong's major lenders increased their prime rates for the first time in four years after the Monetary Authority announced a 75-basis point increase to its benchmark rate.

Meanwhile rents rose in September for a fifth consecutive month, edging up 0.2 percent compared to August, but they remained 2.2 percent down from a year ago.