HONG KONG’S private home prices rose for the fifth straight month in May to a record high, but the pace slowed from the previous month on caution over Sino-U.S. trade tensions.

Home prices in May rose 1.4 percent from a month earlier compared with April’s revised 3.2 percent increase, government data showed Friday. April’s pace of growth was the fastest since February 2013.

The price index of 396.8 last month topped 394.8 in July last year to become the highest on record in one of the world’s least affordable property markets.

Market participants expect more volatility in housing prices in the second half of the year.

“The property market has performed well in the first half of the year ... recording around 9 percent gains,” said Thomas Lam, executive director of Knight Frank. “But the trade disputes will definitely affect prices in the second half.”

Lam expected a correction of 5 percent for the rest of 2019, registering a flat to small rise for the full year. He also revised down the valuation of land parcels to be sold by the government by 5 percent.

In May, a flat of 60 square meters on Hong Kong Island cost an average of HK$11.3 million (US$1.45 million), according to official data.

Over the past decade, ultra low interest rates, limited housing supply and large capital flows from mainland buyers have pushed housing prices up more than 200 percent.

For the first six months of the year, sales of primary homes recorded the highest volume in 15 years, while sales value was at the second-highest level on record, according to realtor Centaline data.

Co-chairman of RK Properties, a unit of Road King Infrastructure Derek Zen, told reporters last week the expectation of lower interest rates and strong housing demand in the city would lend price support and he expects a 5 percent rise for the full year.(SD-Agencies)