Zhongyuan Real Estate: CCL rebounded 1.2% due to interest rate cut, rising for two consecutive weeks, a total of 1.5%.

Yang Mingyi, Senior Joint Director of the Research Department of Central Plains Real Estate, stated that the latest Central Plains City Leading Index (CCL) was at 139.25 points, a week-on-week increase of 1.17%, the largest in 9 weeks. This was in response to the market conditions for the week when the Federal Reserve and major banks in Hong Kong announced the third interest rate cut on December 19. Yang Mingyi pointed out that the continuous interest rate cuts brought positive news for the Hong Kong property market, with the CCL increasing for 2 consecutive weeks, totaling 1.53%. However, with multiple new developments launching sales with discounts and promotions, the secondary market remained sluggish, and short-term property prices in Hong Kong continued to fluctuate. It is expected that CCL will continue to hover between 136 and 140 points before the Lunar New Year, and the future direction of property prices in Hong Kong still needs to be observed. The CCL is still at its lowest level in over 8 years, hovering around the level in late September 2016. Compared to the low of 135.86 points before the first interest rate cut in September 2024, the index has increased by 2.50%, but compared to the historical high of 191.34 points in August 2021, it has decreased by 27.22%. Before the withdrawal of cooling measures in March 2024, the index was at 143.02 points, a decrease of 2.64%. The Central Plains City Leading Index of large-scale housing estates, CCL Mass, reported 139.92 points, an increase of 1.30% on a weekly basis. The CCL index for small and medium-sized units was at 138.60 points, an increase of 1.17% on a weekly basis. The CCL index for large units was at 142.51 points, an increase of 1.18% on a weekly basis, reaching the level from January 2017. The property price index for the four regions showed three increases and one decrease. The CCL Mass index for Hong Kong Island was at 143.10 points, a sharp increase of 3.27% on a weekly basis, the largest increase in 9 weeks, with a total increase of 4.96% over 2 weeks. The CCL Mass index for Kowloon was at 135.29 points, an increase of 1.11% on a weekly basis, with a total increase of 2.31% over 2 weeks. The CCL Mass index for the East New Territories was at 149.61 points, an increase of 0.83% on a weekly basis, ending a 3-week decline. The CCL Mass index for the West New Territories was at 128.19 points, a decrease of 0.13% on a weekly basis, with a total decrease of 0.47% over 2 weeks. The indices for Hong Kong Island, Kowloon, East New Territories, and West New Territories have been hovering around the levels from August 2016, September 2016, mid-November 2016, and mid-December 2016, respectively.