Chung Yuan: CSI (residential property prices) fell for 2 consecutive weeks but still at a more than 4 and a half year high, indicating that the upward trend in Hong Kong property prices continues.

Yang Mingyi, Senior Co-Chairman of the Research Department of Zhongyuan Real Estate, pointed out that the CSI (residential sales price) latest report is 68.20 points, a decrease of 1.77 points from last week's 69.97. Due to the Middle East conflict and stock market volatility, CSI has fallen for 2 consecutive weeks, with a total decrease of 2.56 points, marking the first consecutive decline recorded in 2026. However, the hot atmosphere in the property market has not diminished, with developers actively launching new projects to meet the demand. The index has been above 55 points for 28 consecutive weeks, remaining at a high level for over 4 and a half years since August 2021, indicating a continued upward trend in property prices. The response to new project subscriptions has been enthusiastic, and with the indication that the US may soon end its involvement in the conflict with Iran, the outlook is for the index to stabilize around the 70-point level in the first quarter. CSI (residential rental price) is reported at 65.94 points, a weekly decrease of 1.17 points. Rental properties continue to receive support from tenants, with the index stabilizing above 60 points for 18 consecutive weeks, indicating that residential rental prices are expected to remain high. As for commercial properties, CSI (commercial property sales price) is reported at 40.63 points (an increase of 0.05 points weekly), and CSI (commercial property rental price) is reported at 40.63 points (an increase of 1.50 points weekly). The commercial property market has become more active, stimulating an increase in rental and sales indexes, but the index is still hovering above the lower limit of 40 points, with hopes that commercial property transactions and rental market conditions will stabilize in the first quarter. In terms of industrial buildings, CSI (industrial property sales price) is reported at 49.32 points (an increase of 4.62 points weekly), and CSI (industrial property rental price) is reported at 47.33 points (an increase of 1.81 points weekly). The rental and sales indexes have been hovering above 40 points for 21 and 17 consecutive weeks, respectively, showing signs of an upward trend. If the indexes can rise above and stabilize around the 50-point level, there is a chance for the industrial property rental and sales trends to bottom out. For office buildings, CSI (office building sales price) is reported at 34.04 points (a weekly decrease of 0.12 points), and CSI (office building rental price) is reported at 34.04 points (a weekly decrease of 0.12 points). The rental and sales indexes have declined for 2 weeks in a row and remain in a bearish territory, indicating that adjustments in the office building market for both transactions and rentals will still take time.