Home prices soaring out of reach

Prices for new and used homes hit a new record.

Used home prices jumped to a new record high for the six straight week last week while home sales rose to the highest in seven months in October despite relentless government moves to drive down prices.

Hong Kong's secondary private residential property prices rose 1.87% between October 22 to 28 from the previous week. It was the largest increase for over 1-1/2 year, said Centaline Property Agency.

The latest Centa-City Leading Index reflects only the housing price for about three weeks ago (mid-October), but it does not reflect the market condition after Hong Kong government imposed the new policies to curb the housing prices. The impact of the government's new measures on the city's property market will be reflected by late November.

The government on Oct 26 unveiled its toughest efforts yet to curb home prices, by imposing a 5% rise in punitive stamp duties on short term home resales within a three-year period, and an additional unprecedented 15 percent Buyers' Stamp Duty on home purchases by companies and non-Hong Kong permanent residents.