Zhongyuan Real Estate: CCL fell 0.39% week-on-week, hovering around the high level of 160 points for seven consecutive weeks.

Yang Mingyi, Senior Co-Director of the Research Department at Centaline Property, pointed out that the latest Centaline City Leading Index (CCL) stands at 159.92 points, reflecting a weekly decline of 0.39%. This week, seven out of the eight major property price indices fell, while one rose, marking the first occurrence of this trend in 21 weeks (over 5 months) since early March this year. However, the CCL remains the fourth highest in 151 weeks (nearly 3 years) since early September 2023. As tensions rise in the US-Iran conflict and oil prices surge again, market concerns about the Federal Reserve raising interest rates have grown. Coupled with a cumulative increase of 10% in property prices this year, buyers are becoming more cautious and slowing down their market entry, with the CCL hovering around the high level of 160 points for seven consecutive weeks. However, banks have raised mortgage cash rebates, and with Hong Kong stocks rebounding recentlywhere the Hang Seng Index reached a new two-month highand the US maintaining interest rates, there is support for property prices. It is expected that prices will continue to consolidate at high levels in the short term. The target for the CCL in the third quarter aims to challenge 165 points (the level before the first price list was released for the Oil Tong Tsui Hai Station II at the beginning of August 2023), with a current gap of 5.08 points or 3.18%. Since the interest rate fell back in May 2025, property prices have reversed their trend and begun to rise again. Additionally, following two interest rate cuts by local banks last year, the CCL has increased by 18.32% compared to the low of 135.16 points during the week when the mortgage interest rate hit its peak in May last year. The CCL has risen by 18.56% from the low of 134.89 points before the financial proposal in March 2025, 17.71% from the low of 135.86 points before the first rate cut in September 2024, and has dropped 16.42% from the historical high of 191.34 points in August 2021.