Like Stock market, HK property market has an index like the stock market dow jone index, the HK Property Price Index comprises a number of constituent estates from all over HK including HK island, Kowloon and N.T.
The index used July 1997 as the base period of the index, the index in the base period equals 100.
The HK CCL property price index is calculated by aggregating the prices of the constituent estates using some formulae.
The following is the index trend from 1994 to the end of 2015.
I’m not going to predict it will be an upward or a downward trend in 2016, since it is not so important to HK property investors indeed. As many countries is working on QE, the value of money will be definitely lower, if you took account of the QE, the trend of the HK CCL property index maybe a flat trend, it may only reflecting of the effects of QE.
When taking account into the Rental ROI of HK property, the HK property is definitely not so pricy, the impression of pricy HK property is only because of HK is in Asia where all other parts of Asia are having much lower property price, and HK property is renowned small, people would just think they are expensive.
The HK CCL index on 24 Dec 2015 is 136.86 (Dropping 0.44 when comparing to the week before), let’s see how will the trend go then in 2016 🙂