Hong Kong Bubble?: Hong Kong Residential Property Prices May 2011

Today, the University of Hong Kong released their Hong Kong Residential Real Estate Series (HKU-REIS) indicating that, in May, the price of residential properties increased 2.01% since April climbing 26.52% above the level seen in May 2010.

The “Hong Kong Island” index, “Kowloon” and “New Territories” sub-components also showed notable monthly and annual increases with the "Hong Kong Island" series indicated that prices have now far outpaced the prior 1997 peak.

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.