Hong Kong Real Estate Shows Signs of Sustained Recovery After Rate Cuts

Hong Kong’s property market saw a strong rebound in October, reaching its highest activity level in three months. The recovery came shortly after the US Federal Reserve and the Hong Kong Monetary Authority (HKMA) eased monetary policies again, following a pause that had started last December. According to data from the Land Registry, total property transactions—including residential, commercial, industrial, and parking units—rose 4.7 per cent to 7,190 deals, up from 6,870 in September, marking the most active month since July’s 7,212 transactions.

Eddie Kwok, executive director for valuation and advisory services at CBRE Hong Kong, noted that property sales have now surpassed 5,000 units for eight consecutive months, the first such streak since the downturn began in late 2021. The total value of property deals climbed 8.3 per cent to HK$57.9 billion (US$7.45 billion). Residential sales accounted for 5,714 transactions, a three-month high and the strongest since July, while the total value of home sales hit HK$51.07 billion, the highest since June. Ricacorp Properties’ head of research, Derek Chan Hoi-chiu, projected that November transactions could rise another 5 per cent to exceed 7,500, potentially setting a new yearly record as new housing projects continue to sell out quickly.

The October figures marked the third straight month of growth, reinforcing optimism for a sustained market rebound. Prices in the secondary housing market also stabilized, with the official index recording six consecutive months of steady or rising levels, signaling that the worst may be behind for the sector.

Following the Fed and HKMA’s quarter-point rate cuts in mid-September, Hong Kong’s major banks—HSBC, Standard Chartered, and Bank of China (Hong Kong)—reduced their prime lending rates, lowering borrowing costs. Analysts expect another rate cut later in 2025, which, combined with easing US-China tensions and favorable mortgage conditions, could further stimulate property demand, with total sales this year projected to rise 13 per cent to around 60,000 units.