Hong Kong may be in recession, but the limited supply of new flats - now at a five-year low - has helped push up residential property prices in the past few months, and they could go higher if the economy improves, experts say.

The latest figures from the Transport and Housing Bureau show units available for sale fell 9.26% to 49,000 units at the end of last month from 54,000 at the end of March. This is the lowest level since records began in the third quarter of 2004.

South China Morning Post