There has been much speculation recently about an ongoing price bubble occurring in the Hong Kong residential property market.The University of Hong Kong’s Residential Real Estate Series (HKU-REIS) indicated that, in August, the price of residential properties increased a whopping 4.31% since July climbing 20.84% above the level seen in August 2009.
The “Hong Kong Island” index, “Kowloon” and “New Territories” sub-components also showed notable year-over-year increases.
The HKU-REIS is a set of property price indices constructed monthly using a “modified” repeat-sale methodology similar to that of the S&P/Case-Shiller indices yet suited to the Hong Kong property market.
