Hong Kong Home Prices Break Record

(Bloomberg) -- Large-scale protests in Hong Kong that have at times turned violent haven’t stopped the upward trajectory of home prices in the city.

Dwelling values touched a fresh high after rising by 1.4% in the week ended June 30, Centaline Property Agency Ltd.’s figures released late Friday show. The home-price strength is evidence that demonstrations since mid-June haven’t had much of an impact so far upon the former British colony’s real estate industry.

Hong Kong’s government has suspended a controversial extradition bill indefinitely after protests that drew hundreds of thousands of people to the streets. However, many are still demanding the complete withdrawal of the proposed law, and vow to continue protesting.

Demand for homes in Hong Kong will be well supported in the short term, according to Bloomberg Intelligence. A dovish interest-rate outlook, low rates of home ownership and limited public housing supply could potentially lift annual sales to a 15-year high, real estate analyst Patrick Wong said in a note earlier this week.

To contact the reporter on this story: Shawna Kwan in Hong Kong at wkwan35@bloomberg.net

To contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net, Sam Mamudi

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