Private home prices in Hong Kong - among the most expensive in the world – fell for the second straight month in October, according to official data published on Friday.

Prices declined from an all-time high as potential buyers became more prudent ahead of a policy meet, Reuters reports. The prices fell 0.9% in October compared to September, following a revised 0.03% drop in September.

Beforehand, house prices had increased for eight months to reach record highs, to levels last seen in May 2019 before the pandemic hit and anti-government protests took place in the city.

According to property agents, buyers had become more cautious before October’s policy address, concerned that a radical housing policy may be implemented to restrict the soaring property prices.

However, after no significant announcements, property buyers soon started to once again become active, with November’s transaction volumes rising up to 40%.

At the forefront of plans to tackle Hong Kong’s housing shortage, unveiled by Chief Executive Carrie Lam in October, is a long-term objective to construct a 300 square-metre Northern Metropolis on the border with the mainland's technology hub of Shenzhen.

"Afterall, supply is still limited in Hong Kong, and the economic and employment recovery has helped to support the property market," stated Derek Chan, head of research at realtor Ricacorp.

Chan forecasts November house prices would be flat or report a minor gain, which may be prolonged into December should the border with mainland China reopen.

Investors predict the border reopening will reinforce the local economy and boost property demand. According to local media, the reopening of the border may occur at the beginning of next month, yet an exact date has not been announced by the Hong Kong government.