Chung Wan: The Hong Kong Rating and Valuation Department's property price index is expected to rise by 3.5% this year, and property prices are expected to outpace rental increases next year.

The Hong Kong Rating and Valuation Department has just released the property price index, with the private residential price index for November 2025 at 297.3 points, a monthly increase of 0.92%, marking the sixth consecutive monthly increase and a total increase of about 3.77% in over 4 years. The cumulative increase for the first 11 months of this year is about 2.8%. The rental index has also increased for 12 consecutive months, with a monthly increase of 0.2% and a total increase of about 4.26% for the year, reaching a new high of 200.7 points. Chen Wing-kei, Vice President and Residential Department Head of Asia-Pacific at Centaline Property, stated that the continuous increase in the property price index for 6 months confirms the upward trend of the property market. Since the US stopped raising interest rates in March and began cutting them in September, the Hong Kong property market has rebounded, with the property price index continuously increasing for 6 months. The Financial Secretary of Hong Kong stated on his blog yesterday that the Hong Kong economy is performing well, with an increase in tourists and exports, and all economic data looking positive. Chen Wing-kei believes that the constant economic fundamentals, along with increasing citizen incomes, will benefit the Hong Kong property market. Additionally, the devaluation of currency is driving funds towards tangible assets, and with the rent increase trend continuing, tenants are turning into buyers, further boosting the demand for residential properties. For example, the Centaline City Leading Index (CCL) has already recorded a 4.3% increase for the year. Chen Wing-kei predicts that the property price index for the whole year of 2025 may see a 3.5% increase. As for the rental index, it continues to benefit from various policies for professionals, seeing a 12-month consecutive increase and reaching historical high levels. With property prices rising for 6 months and rent rising for 12 months, there has been a rare phenomenon of simultaneous rise in both prices. Despite the current property prices still being 25% below historical highs, Chen Wing-kei believes that buying property for rental income with a return of over 3.5% will still be the trend for next year. However, he expects the rental increase trend to slow down next year, with property price increases outpacing rental increases.