62 | The Economy
On transactions, the number of sale and purchase agreements for residential property received by the Land Registry surged by 18 per cent to 135 778 in 2010, and total consideration by an even sharper 32 per cent to $560.7 billion, both the highest levels since 1997. Likewise, the number of sale and purchase agreements for non-residential property jumped by 43 per cent to 26 961, and total consideration also by 43 per cent to $128.8 billion (Chart 16).
Chart 16
Sale and Purchase Agreements by Broad Type of Property
Number ('000)
50
40
30
20
10
Residential property
Non-residential property
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2006
2007
2008
2009
2010
Overall trading in the property market was active in most parts of 2010.
Price Movements
Inflation went up progressively in 2010. Higher imported inflation was a major contributing factor, due to the strong rebounds in food prices and other commodity prices in the international markets on the back of continued global economic recovery and a loose global monetary environment. Domestic price pressures, though still contained, were also on the rise in 2010, being a natural consequence of the brisk expansion of the local economy. In particular, the feed-through of the earlier surge in housing rentals into consumer prices became more evident in the latter part of 2010. During the year, business cost pressures from rising commercial rentals also increased. Labour costs, on the other hand, were still kept in check. The phenomenon of rising inflation over the course of 2010 was not unique to Hong Kong. Indeed, many Asian economies with robust economic growth likewise experienced higher inflationary pressures.
The Composite Consumer Price Index (Composite CPI) rose by an average of 2.4 per cent in 2010, up from 0.5 per cent in 2009. (The figures quoted refer to the 2004/05-based series. The Composite CPI rose by an average of 2.4 per cent in 2010 by reference to the new 2009/10-based series). Netting out the effects of the Government's one-off relief measures to give a more accurate indicator of the inflation trend, underlying consumer price inflation averaged at 1.7 per cent for
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