Central Properties: Hong Kong Property Prices Have Bottomed Out and Are Entering a Stabilizing Phase
CNA Finance APP has learned that Central Properties' Asia-Pacific Regional Vice President and Residential Department General Manager, Mr. Chen Yongjie, stated that the property price index in June reflects the transactions from May to June, with an increase of three consecutive months, although the magnitude is relatively small, it fully demonstrates that Hong Kong property prices have bottomed out and are entering a stabilizing phase. In recent weeks, the stock market has performed well, with the Hang Seng Index breaking through 25,000 points for the first time in over three years and a half, creating a wealth effect, which has boosted the mood of the real estate market, adding to the fact that the interest rates on mortgage loans have fallen significantly, making it easier for buyers to purchase properties. Furthermore, with the recent easing of tensions between China and the US, US President Trump has also stated that he needs the Federal Reserve to cut interest rates to stabilize government bond yields. Market expectations are that the Federal Reserve will cut interest rates in the second half of the year, which will further boost transaction sentiment.
The Hong Kong Rating and Valuation Department has just released the property price index for private residential properties. The June 2025 private residential property sales price index was reported at 286.7 points, with a monthly increase of 0.03%, marking three consecutive months of increases, with an accumulated increase of 0.63%. For the first six months of this year, the property price index has narrowed its decline to 0.86%. The rental index also rose by 0.3% month-on-month, marking seven consecutive months of increases, a new high since September 2019.
Regarding resale transactions, approximately 2,300 cases were recorded in May and about 1,500 in June. As of now, the resale market has already recorded nearly 1,900 cases this month, including several high-end property transactions, with a strong possibility that the number will exceed 2,000 by the end of the month.
Regarding rental transactions, the index has risen for seven consecutive months. In recent weeks, the summer rental peak season has begun, with many families moving into new homes, as well as overseas and mainland students rushing to secure properties before the new academic year starts. Additionally, the Hong Kong government has been actively promoting the introduction of talent, resulting in a large demand for rentals on the market. Central Properties facilitated approximately 2,300 rental transactions this month, an increase of over 60% compared to the same period last month, driving up rental values and attracting more investors to buy properties and rent them out. However, future Hong Kong property price trends will continue to be influenced by factors such as Hong Kong's economy and the US-China situation. If the United States announces a rate cut, and the US-China situation remains stable, it is believed that Hong Kong property prices will become more certain in the second half of the year.