Hong Kong’s lived-in home prices rose by 0.14 per cent in August, according to the latest official data, suggesting a gradual recovery in the city’s struggling residential property market.
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An official index measuring price movement among the city’s second-hand homes made a modest gain for the fifth straight month, narrowing this year’s price decline to 0.24 per cent, according to data from the Rating and Valuation Department (RVD) released on Friday. Since April, Hong Kong’s home prices have increased by 1.26 per cent.
“Following the US Federal Reserve’s quarter-point rate cut on September 18, major banks in Hong Kong lowered their prime rate by 0.125 per cent,” said Eddie Kwok, executive director for valuation and advisory services at CBRE Hong Kong. “This translates into a lower effective mortgage rate. We believe a lower borrowing cost will bring more buyers into the Hong Kong residential market, thus lending support to residential property prices.”
CBRE was “cautiously optimistic” that the residential market would bottom out and experience a steady recovery in transaction volume in 2026, he added.
Amid a long market slump, residential prices fell 28.4 per cent as of March this year from a peak in September 2021. The latest figures point to a stabilising trend, with volume and prices either remaining steady or gaining.
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Hong Kong home transactions remained above the 5,000 level for the sixth consecutive month in August. A total of 5,291 homes were sold last month, according to data from the Land Registry. While that represented a drop of 8.2 per cent from 5,766 in July, it was nearly 45 per cent higher than a year earlier.