7.9% Sharp Increase

Based on Urban Redevelopment Authority (URA)'s estimated price index of private residential property, prices rose 7.9% to 147.3 points in the 2nd Quarter 2007, compared with the 4.8% increase in the previous quarter (increased by 7.6% in Core Central Region, 7.9% in Rest of Central Region and 6.5% in Outside Central Region).

A lot of speculating activities are encouraged by the recent record high & hottest deals (such as The MarQ at $5100psf or the 3am queuing for Duchess Residences). Some people bought in early this year are excited talking about the >40% (on paper) gains...

If it continues to be crazy like this, I think it will repeat the 1996 - 1997 story again when anti-speculation & cool-down measures were applied and then the market over-corrected itself in the several years after. A progressive & sustainable increase is far better than this sharp uptrend. But the speculators deserve getting burnt.