China Real Estate: CCL3 Continues to Rise After Stabilizing, Hong Kong Property Prices Fell by 0.78% in the First Half of the Year.

Yang Mingyi, Senior Joint Director of the Research Department of Midland Realty, pointed out that the market is filled with positive news, the atmosphere in the Hong Kong property market is improving, leading to an increase in second-hand transactions. The CCL has increased by 0.73% in three consecutive weeks, compared to a 1.49% increase after the financial case in mid-March. There are signs of stabilization in Hong Kong property prices, and it is estimated that the short-term CCL will fluctuate narrowly between 135 and 137 points. The latest Central City Leading Index (CCL) stands at 136.56 points, with a week-on-week increase of 0.32%. On June 10th, the one-month interbank rate hit a 3 year low, and on the 11th, a consensus was reached on the trade framework at the China-US London economic and trade talks. The Hang Seng Index closed at 24366 points, reaching a near 3-month high. On the 13th, tensions in the Middle East escalated further, and on the 14th, the first round of price-listings for 138 units at the fifth phase of the Wong Chuk Hang MTR Station on the south side of Hong Kong Island were sold out that morning. The CCL is still at a low point of over 8 and a half years since hovering around the level at the end of August 2016. In the second quarter, the CCL fluctuated repeatedly, leading to a cumulative decline of 0.78% in the first half of 2025 in Hong Kong property prices. Compared to the low point of 134.89 points before the financial case in March 2025, the index has risen by 1.24%. Compared to the low point of 135.86 points before the first rate cut in September 2024, the index has risen by 0.52%. It has dropped by 28.63% compared to the historical high of 191.34 points in August 2021, and by 4.52% compared to the low point of 143.02 points before the withdrawal of cooling measures in March 2024. The Hong Kong Monetary Authority has entered the market four times since June, buying a total of 59.072 billion Hong Kong dollars. The Ministry of Commerce has confirmed that the United States has lifted a series of restrictive measures against China. On July 5th, the first round of price-listings for 160 units at the NOVO LAND Phase 3A in Tuen Mun has been pushed out, and the impact on local second-hand property prices in Hong Kong will be reflected in the CCL to be announced at the end of July 2025. The Central City Leading Index of large-scale housing estates, CCL Mass, reported 137.89 points, with a week-on-week increase of 0.30%. The CCL for medium-sized units reported 136.52 points, with a week-on-week increase of 0.29%. Both CCL Mass and CCL for medium-sized units have risen for 5 weeks in a row, with accumulative increases of 1.24% and 1.16% respectively, still hovering around the levels of mid-September 2016. The CCL for large units reported 136.79 points, with a week-on-week increase of 0.49%, and a total increase of 1.17% in 2 weeks, remaining at the levels of late August 2016. Property prices in the four districts have seen two rises and two declines for 4 consecutive weeks. The CCL_Mass in Kowloon reported 136.15 points, with a week-on-week increase of 1.47%, the largest increase in 16 weeks. The CCL_Mass in the West New Territories reported 126.83 points, with a week-on-week increase of 1.14%, the largest increase in 18 weeks, with a total increase of 1.60% in 2 weeks. The CCL_Mass in the East New Territories reported 151.11 points, with a week-on-week decrease of 1.05%, the largest decline in 7 weeks, with a total decline of 1.47% in 2 weeks. The CCL_Mass in Hong Kong Island reported 133.93 points, with a week-on-week decrease of 1.16%, the largest decline in 5 weeks. The indices for Hong Kong Island, Kowloon, the West New Territories, and the East New Territories are at the levels of late May 2016, late September 2016, late October 2016, and late January 2017 respectively.