Speculators drive up house prices in Hong Kong

Speculators have been driving up property prices in Hong Kong. In the first quarter of 2011, house prices surged by 7.14% (5.04% in real terms) from the previous quarter, based on the latest figures released by the government’s Ratings and Revaluations Department.

In the year to end-Q1 2011, house prices skyrocketed by 23.85% (18.8% when adjusted for inflation).

HK property prices rose by 22.1% y-o-y in Q4 2010, after a 25% y-o-y rise in Q3 2010, according to the estimates of the property consultant Knight Frank.

Marking the 14th anniversary of Hong Kong’s return to Chinese rule, thousands of angry residents gathered in the Central Business District (CBD) on July 1 to protest the skyrocketing property prices in the city-state, which many feel are primarily caused by property developers’ control over the country’s economy. The demonstrators accused the government and developers colluding to establish a monopoly and called for Chief Executive Donald Tsang to step down.

Source: Global Property Guide