HONG KONG’S home prices increased by the largest margin in four months in July, climbing 1.9 percent compared with the month before, government data showed yesterday, alongside a mild rebound in the financial hub’s economy in the second quarter.

    Home prices increased to 281.4 on a widely tracked government index compiled by the Rating and Valuation Department. The figure, however, was 7.5 percent lower than the same period a year ago, and 8 percent off a historic high 10 months ago.

    Hong Kong property is among the most expensive in the world.

    The market has cooled off since home prices peaked at a historic high last September, but it has seen modest growth since April.

    Robust sales in first-hand apartments over June have also helped nudge up prices.

    Centaline Property Agency Ltd., one of the largest property agencies in the city, said in a statement earlier July it expected flat prices to return to peak levels in the fourth quarter this year.

    Hong Kong’s Chinese mainland-dependent economy grew 1.7 percent in the second quarter from a year earlier even amid a slowdown in exports and tourism.

    Property rental prices also edged up 1 percent, the third consecutive monthly increase.

    The number of mortgage loans approved in June fell 3.2 percent to HK$22.3 billion compared with May, according to data released by the city’s de facto central bank, the Hong Kong Monetary Authority.

    (SD-Agencies)