This photo shows a view of residential buildings in Hong Kong on May 7, 2018. (ANTHONY WALLACE / AFP)

HONG KONG - Hong Kong private home prices reversed a fall in March to edge up 0.4 perent, as bargain-hunting drove transaction volumes to a four-month high, but analysts cautioned the improvements did not signal the market was bottoming out.

He expected home prices to drop 10% for the whole year, hurt by a worsening economy and rising unemployment

The March rise compared to February’s revised figure of a drop of 1.5 percent, government data showed on Wednesday, sending prices in one of the world’s least affordable property markets back to the level of a year ago.

READ MORE: HK home prices suffer biggest weekly decline since 2016

“The price index was better than expected, but it hasn’t truly reflected the epidemic impact,” said Thomas Lam, an executive director of real estate consultancy Knight Frank. “I believe the market correction has yet to finish.”

He expected home prices to drop 10 percent for the whole year, hurt by a worsening economy and rising unemployment. Prices have fallen 1 percent this year.

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Property agents said strong pent-up demand and low interest rates will give some support to the market, and the transaction volume continued to recover in April.

On Tuesday, Hong Kong reported no new coronavirus infections for a fourth day on Wednesday, bringing some relief as the Asian financial hub grapples with economic ruin triggered by the disease in the wake of months of crippling anti-government protests.

Hong Kong has recorded 1,037 infections and four deaths since the outbreak began in January.