Hong Kong home prices rise for 4th straight month in July - govt index

By Venus Wu and Joy Leung Aug 31 (Reuters) - Hong Kong home prices increased by the largest margin in four months in July, climbing 1.9 percent compared with the month before, government data showed on Wednesday, 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 the past month have also helped nudge up prices. Centaline Property Agency Ltd, one of the largest property agencies in the city, said in a statement earlier this month it expected flat prices to return to peak levels in the fourth quarter this year. Hong Kong's China-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. (Editing by James Pomfret and Biju Dwarakanath)