Hong Kong Property: Hong Kong property prices and rents are expected to rise by 5% in 2025.

CEO of MIDLAND HOLDING (Residential) and Executive Director of Hong Kong Real Estate, Manners Mah, pointed out that he is conservative but optimistic about the Hong Kong property market this year, with prices expected to rise by around 5%. The specific situation will depend on international political relations, interest rate cuts, and other factors. Additionally, the large amount of inventory from developers will impact prices, requiring some time to absorb. The market is expected to improve slightly in February and March. In terms of rentals, Manners Mah is optimistic, as there has been a significant increase in tenants, many of whom are professionals, with rents expected to rise by 5% this year. During the first 14 days of the Year of the Snake, a total of 241 new property transactions were recorded, a significant increase of 1.8 times compared to 81 transactions in the previous year. Manners Mah mentioned that the current investment immigration program allows investment in residential properties worth HK$50 million or more. If the Hong Kong government were to include residential properties in the new investment immigration program, it is believed that this would significantly enhance the attractiveness of the Hong Kong property market, especially for mainland buyers and high-net-worth individuals. This measure would not only stimulate demand in the property market but also drive overall economic growth. It would not only boost transactions in the high-end luxury housing market but also benefit the mid-sized and small property markets, creating a new dynamic in the market. Director of the Research Department at Hong Kong Real Estate, Benny Wong, mentioned that in order to understand the property intentions of citizens, they conducted a survey in early February on "Property Intentions for the First Quarter," receiving nearly 300 valid responses. The survey showed that about 46.3% of respondents were considering entering the market in the next 12 months, a decrease of about 11.4 percentage points compared to a similar survey conducted in the fourth quarter of last year, reflecting a cautious attitude among citizens before the budget announcement. As the Year of the Snake begins, approximately 58.4% of respondents are pessimistic about the future market, believing that property prices in Hong Kong will drop in the next 12 months, an increase of about 11.3 percentage points compared to the previous quarter.