Property prices in Hong Kong reached an all-time high last week after relentless gains over the past three months. Home values in the city have now broken their previous record set last August, Centaline data showed, making the correction in the second half of 2018 look like a temporary blip.

The Centa-City Leading Index, which measures the city’s used homes values, stood at 189.42 for the week ended May 26, the highest ever. Prices have risen by 8.6% since the beginning of the year alone.

Home prices have rebounded on revived sentiment around low interest rates and limited supply. UBS Group AG said earlier this month that the property market in Hong Kong will remain bullish for another decade, thanks in part to the population influx from mainland China.

Hong Kong is already the world’s least-affordable property market and a CBRE Group report in April found that the city has the highest average home price at $1.2m (£952,000) as well as the highest average prime property price at $6.9m (£5.5m).