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The latest release of the University of Hong Kong's Hong Kong Residential Real Estate Series (HKU-REIS) indicates that, in February, the price of residential properties increased a notable 1.91% since January. And it rose 29.26% above the level seen in February 2012. Clearly, the slight pullback in prices seen in late 2012 has been completely surpassed by another, notable leg up.

With the prior late-1990s era peak having been bested handily by the latest price run-up, it will be interesting to see how long this period of house price inflation can run. 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 is suited to the Hong Kong property market.

Source: Hong Kong Bubble? Property Prices, February 2013