Hong Kong prices world's second-highest

HONG KONG: The territory has become the world's second-most expensive city in terms of housing values, topped only by New York, says online research company Global Property Guide.

A 120 sq m apartment in New York sold for an average of US$16,216 (RM53,496) per sq m at the end of last year, the highest price of all 90 markets that were surveyed. An equivalent flat in Hong Kong cost US$15,424 per sq m.

At a price of US$13,814 per sq m, Tokyo was ranked third, followed by Mumbai at US$11,413 per sq m and Singapore at US$10,723.

But with prices outpacing rental growth, Hong Kong ranked poorly in terms of gross rental yield -- at 3.12%, the seventh-lowest. Gross rental yield for a New York flat was 3.75%, Tokyo was 5.69% and Mumbai was 4.02%, followed by Singapore's 3.97%.

An earlier survey by Global Property Guide showed that home prices in Hong Kong recorded the strongest inflation-adjusted gains in a survey of 34 property markets last year, followed by Taiwan.

The 2009 survey of residential property prices showed Hong Kong housing prices ended the year up 20.8% in real terms against 2008 year-end prices, after a 15% decline in last year's first quarter triggered by the global financial crisis.

Taiwan was ranked second, with home prices up 18.3%. – South China Morning Post