Home prices reached a four-month high last month, government data showed on Wednesday.

According to the Rating and Valuation Department, February home prices rose 2.2 percent on-month, after an increase of 1.1 percent in January.

But compared to February last year, prices were down by 9.8 percent.

Prices for small and medium-sized units last month were 2.2 percent higher than they were in January, and those for large-sized homes went up by 0.6 percent.

Rents for private residential flats increased by around 1 percent, ending a five-month downward streak.

The founder and chief executive of Centaline Property Group, Shih Wing-ching, said he believed the resumption of quarantine-free travel with the mainland, as well as the SAR government’s Covid relief measures, had contributed to the increase in home prices.

“The rebound has already absorbed the pent-up demand during the Covid period, but the interest rate in America is very likely to peak off. This will help the Hong Kong property market to go on further,” he said.

“But it depends on whether the real economy can recover, because at this moment, only the tourist industry and the retail market are benefited. You need the financial market, the professional services, import and export… all these sectors to recover before the property market has new demand.”

Shih said he believes the increase will slow down in the second quarter of this year.