Reuters reports that Hong Kong home prices reached a record high for a second consecutive month in June.

Small and medium-sized units are indicating the biggest gains in the market. Overall, home prices have risen 2.1 percent this year, according to data released by the government.  

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Billionaire Li Ka-shing is the owner of Cheung Kong (Holdings) LTD and Hang Lun Properties - two of Hong Kong's most powerful developers.

Each holding company has continued to benefit from the steady rise in demand for housing in the Hong Kong area.

Market analysts note that substantial demand from end-users, who are typically not affected by "cooling off" methods that control high housing prices, is the driving force behind the significant rebound in profits for housing developers.

Reuters reports that the city's real estate sub-index has increased nearly 25 percent since March, when its levels were at their lowest for 2014.

The sub-index is on pace to reach its highest levels since last September which was a record-setting high.

Hong Kong, a city with some of the highest housing prices in the world, continues to see the effects of a series of reforms enacted by the government in late 2009.

Several "cooling" measures were implemented in the housing market but housing prices remain high.

Hong Kong's largest developer, Sun Hung Kai Properties, has unveiled a new housing development plan in the upscale Victory Peak area that is on pace to be the most expensive housing unit in the world.

One unit will cost an estimated $22,707 (USD) per square foot.

Prices have surged more than 120 percent since 2008 and this is seen by many analysts as the catalyst for the sharp rise in housing costs.

Low interest rates, housing supply shortages, and flush liquidity are also seen as having a direct impact on the cost of housing.  

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