Hong Kong home prices dip, snap longest growth run since 2018

[HONG KONG] Hong Kong home prices eased in July, ending the longest winning streak since 2018, underscoring weakening sentiment in the residential market.

The price index for private domestic homes slid 0.5 per cent in July from a month earlier, according to figures released by the Rating and Valuation Department on Thursday (Aug 27). That snaps a 13-month streak of gains. The fall followed June’s revised monthly gain of 0.2 per cent. The index is still up 7.3 per cent from the end of last year through July. 

The price decline comes after a downward trend seen in transactions and considerations last month.

The city recorded a more than 40 per cent slump in home sales volume and values in July from a month earlier, according to land registry data. 

The pullback came as buying demand faced the combined headwinds of a stock-market correction and a series of measures by mainland authorities to curb capital outflows in the past few months. The efforts include taxing mainland citizens’ oversea stock tradings, offshore insurance policies and trusts. 

Hong Kong has seen strong home sales in the first half of 2026, largely supported by mainland Chinese buyers, accounting for about half of first-hand residential sales by value in the three months ended March.

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Real estate agency Centaline Property said in a report that the city’s overall property sales are expected to fall further in August to the lowest in 18 months as buyers turn conservative, citing impact from cross-border capital clampdown and the Middle East situation. BLOOMBERG, REUTERS