Lifong: Hong Kong property prices expected to remain under pressure in the short term, with prices expected to fall by 5% for the whole year.

Wang Zhaoji, head of the Research and Consultancy Department of the Greater China Region at Lefang, stated that the Federal Reserve announced a 0.5% interest rate cut, and the Hong Kong Monetary Authority immediately lowered the discount window rate by 50 basis points. It is expected that new property prices will continue to outperform secondary market prices for the rest of the year. Hong Kong property prices are expected to fluctuate around the bottom in the fourth quarter of this year, with a 5% decline for the whole year. The property market in 2025 will be better than this year, but due to high housing supply, property prices are not expected to rebound significantly, with an estimated increase of about 3%. He also estimated that Hong Kong's interbank interest rates will continue to fall, while the most favorable rates will decrease more slowly, and the overall high interest rate environment will continue to affect the cost of new mortgages. As actual interest rates have increased since 2022, there is still insufficient purchasing power in the short term, and property prices will continue to be under pressure, especially for secondary market prices.