Hong Kong property prices continue to rise, with the U.S. price index increasing by 3.11% in the year. It is expected that property prices will rise by 5% for the whole year.

The Property Valuation Department in Hong Kong announced today the private residential price index for September, which increased by 1.32% compared to the previous month, marking the fourth consecutive month of increase. The trend for the year has shifted from a decline to an increase, with a rise of about 1.14% in the first nine months, reversing the continuous downward trend of the past three years. Analyst Chan Chung-hin from Midland Realty pointed out that the upward trend in property prices in Hong Kong continues, with the latest Midland Property Price Index at 132.11 points, increasing for the seventh consecutive week and rising by approximately 1.54% in September. This marks a new high in 15 months since July last year, with a total increase in property prices this year reaching 3.11%, compared to a low of about 4.62% earlier in the year. This also marks a reversal of the continuous downward trend of the past three years. With the positive factors in the property market benefiting from various sources this year, property prices may even have a chance to increase by 5% throughout the year. Chan Chung-hin pointed out that the property market has been driven by several positive factors this year, including the US resuming interest rate cuts, the rebound in Hong Kong stocks leading to wealth effect, reduction in stamp duty for small and medium properties, rising rents stimulating the demand for "rent-to-buy" conversions and attracting long-term investors into the market, all of which have led to a rebound in property prices. With the Federal Reserve expected to further cut interest rates by the end of this month, it will continue to benefit the Hong Kong property market, with potential for a 5% increase in property prices throughout the year. While the Property Valuation Department's property price index has shifted from decline to increase, their rental index has also shown further increase. The private residential rental index in Hong Kong increased by 0.2% in September, rising for the 10th consecutive month. Meanwhile, the average rent for private residential units calculated by usable area in Midland's "Rental Trend Chart" for September was about HKD 38.78 per square foot, increasing by approximately 0.03% compared to the previous month and reaching a new high for the eighth consecutive month. The rental has increased by approximately 2.95% in the first nine months of the year. Both property prices and rents have increased this year, presenting a situation of "rising prices and rents" once again since 2021. Chan Chung-hin continued to state that the effects of interest rate cuts will continue to attract homebuyers, long-term and short-term investors to enter the market. The recent easing of tensions between China and the US over trade tariffs has also injected positive momentum into the Hong Kong property market, having a positive impact on property prices. In terms of rents, the demand for housing in Hong Kong remains strong, and with the government actively attracting talent to the city, rental prices are receiving support. Therefore, it is believed that the situation of "rising prices and rents" will continue throughout the year.