Hong Kong home prices rise for sixth month as market sentiment perks up

[HONG KONG] Private home prices in Hong Kong grew 0.9 per cent month-on-month in November, the sixth month of increase in a row, government data showed on Monday (Dec 29), as interest rate cuts and a vibrant stock market supported sentiment.

Home prices climbed 0.9 per cent in November from October, following a revised 0.4 per cent rise in the previous month, data from the Rating and Valuation Department showed. Prices have risen 2.8 per cent this year, turning around from an annual decline since 2021.

Home prices in Hong Kong, one of the world’s least affordable cities, have tumbled nearly 30 per cent from a 2021 peak, hurt by higher mortgage rates, a weak economic outlook and poor demand after many professionals left due to strict Covid-19 curbs and new national security laws.

Authorities tried to prop up the sector – a core pillar of the economy – last year, removing curbs on property purchases and relaxing ratios on down payments, but housing demand has remained soft.

Property developers have been selling new flats at discounted prices to boost sales, suppressing the second-hand market, which is reflected in the official price. Major Hong Kong banks lowered interest rates in October, the fifth cut since September 2024, following a reduction by the US Federal Reserve.

Hong Kong’s monetary policy moves in lockstep with the US as the city’s currency is pegged to the greenback.

SEE ALSO

Billionaire Cheng family to seek sale of London Rosewood as pressures mount

Hedge fund Qube to take six UBS floors in Hong Kong’s Central

Hong Kong leader says fire probe expected to conclude within 9 months

Hong Kong builder Parkview secures US$940 million loan refinancing

JD.com to buy stake in Hong Kong’s CCB Tower for HK$3.5 billion

More

Analysts believe the Hong Kong home market is bottoming out with support from stable buying volume. They said that prices next year would depend on the pace of rate cuts and the severity of Sino-US trade tensions.

JPMorgan said in a report that it expected Hong Kong home prices to rebound by another 5 per cent by the end of 2026, while the key downside risk is a sharp stock market fall. REUTERS