Government restrictions on the property market in Hong Kong have played an important role in helping the region to avoid an asset bubble forming.

This is according to the latest report by Jones Lang LaSalle, which noted that despite the limits placed on the sector, the city's luxury residential properties continued to lead capital value growth across Asia Pacific through 2010.

It's interesting to see the price trends across Asia Pacific are largely similar in direction to China, if not as dramatic in magnitude, said KK Fung, managing director, Jones Lang LaSalle Greater China.

The Jones Lang LaSalle report revealed that luxury residential prices in Hong Kong grew by 6.4 per cent quarter-on-quarter in the last three months of 2010. The property consultancy said that the growth was driven by continuing rental growth and tight supply in the city.

Across Asia, luxury residential markets saw capital values rise by 1.8 per cent quarter-on-quarter in the last three months of the year.