Hong Kong housing prices hit a 12-year high in the first quarter after increasing 7.5 per cent from the end of 2009.

The surge was powered by a combination of low interest rates, limited supply and growing confidence in Hong Kong's economic recovery, according to a housing index compiled by Centaline Property Agency.

It said its Centa-City Leading Index showed that Hong Kong housing prices have surged since the end of 2008, nearing the heady levels of 1997 just before the crash caused by the Asian crisis.

South China Morning Post