Le Fang: Federal Reserve rate cuts slow down pressure on Hong Kong property market, significant price rebound still needs time.

Leo Fung, senior director of research and consulting for Greater China at LeyaFong, stated that the US announced a 0.25% interest rate cut in September, and it is expected to cut rates by another 0.25% by the end of the year. The impact of the high interest rate environment on the Hong Kong property market will gradually slow down. However, as there has been a certain increase since 2022, the market needs time to release purchasing power, and there is still not enough purchasing power in the short term. But it is believed that property prices will bottom out in 2025. He pointed out that new projects will continue to have better response in the coming months than second-hand properties, and the prices of new projects are quite attractive. Some developers are providing financial plans and rebates to buyers, indirectly lowering the threshold for buyers to enter the market. He expects property prices in Hong Kong to fluctuate near the bottom for the remainder of 2025, with a possible decline of 0-3% for the year, and a potential rebound next year. The property market will slowly improve, but currently, due to high inventory levels, there are no conditions for a significant rebound in property prices.