Midland Realty: Expect Hong Kong property prices to continue steadily rising in September, while rents continue to rise.

According to the data from the Hong Kong Rating and Valuation Department, the private residential property price index in Hong Kong reached 287.9 points in July this year, up by 0.42% from June's 286.7 points, marking the fourth consecutive monthly increase. However, on a year-on-year basis, the index fell by 3.26%, with a cumulative decrease of 0.45% in the first seven months of the year. The rental index for July was 196.3 points, up by 0.56% month-on-month and 1.29% year-on-year, with a cumulative increase of 1.97% in the first seven months of the year. Chen Wing-keung, Vice President and Head of Residential Department for Asia Pacific at Centaline Property, stated that the continuous increase in property prices for four months confirms a rising trend. The sudden increase of 0.42% in July was mainly due to the continuous decline in the Hong Kong Interbank Offered Rate (HIBOR) from June to July, creating a "honeymoon period of ultra-low interest rates" that attracted funds into the property market, with many buyers taking advantage of the situation. Property prices are currently in a slow upward trend, with a cumulative increase of 1.05% over the past four months, still not yet recovering to the peak in November last year. The easing of tensions in US-China relations and the reduced controversy in tariffs have also contributed to the increase in buyer confidence and a faster pace of transactions in the property market. The recent hint from the Federal Reserve of a possible interest rate cut in September is expected to further boost trading sentiment and support a steady rise in property prices next month. In addition to the interest rate cut, the upcoming policy address is also highly anticipated by the public, with hopes for stimulating economic policies. The policies implemented in recent years have successfully regained ground in the financial market, with various businesses continuing to raise funds in Hong Kong, creating a prosperous market environment, which is expected to benefit the property market as well and lead it back to an upward trajectory. The market for both new and secondary properties has been vibrant this month, with good progress in reducing inventory. It is estimated that there may be around 1,700 new property transactions this month and a potential breakthrough of 2,500 transactions, surpassing the peak of 2,400 transactions in June. As for the rental index, due to various government policies and the traditional peak rental season during the summer holidays, the index has continued to rise for eight consecutive months. With a large number of overseas and mainland students coming to Hong Kong for their studies, creating a huge demand for housing, rental properties are in short supply and rental prices are expected to continue to rise.