Hong Kong Property Market Update

Property prices in Hong Kong increased by 10.5% for the first half of this year versus an increase of 5% for the Hang Seng Index.

This mirrors the rise of 11% for the Hang Seng Property Index. Experts worry that the HK property market may be facing a bubble when price has appreciated a staggering 42% since the start of 2009.

But property consultants are predicting a further increase of 10% for the second half of 2010. With developers still paying record prices for land auctions, this prediction look set to come true.