Centaline Property: Hong Kong property prices regain upward momentum, expected to rise steadily in the fourth quarter.

Hong Kong's Rating and Valuation Department has just released its property price index. The private domestic price index for August 2026 stood at 320.5 points, up 0.06% month-on-month. In the first eight months of 2026, property prices have accumulated a rise of 6.98%. In August, driven by the summer leasing peak season, the rental index continued to hit a record high, rising 1.64% month-on-month. Chen Yongjie, Vice Chairman of Centaline Property Asia-Pacific and President of the Residential Department, said the decline in the Rating and Valuation Department's property price index last month was mainly affected by rainy weather and the World Cup. With the tournament over and the weather improving, viewing activities have returned to normal levels, and property prices have stopped falling and rebounded with the support of transaction volume. On the leasing front, the August rental index mainly reflects the entry into the leasing peak season in July, with many family tenants, professionals, mainland students, and overseas students actively seeking flats to rent in preparation for the new school year. Chen Yongjie noted that the latest Policy Address devoted little attention to the property market, but attracting talent remains a major government direction. As the number of professionals and top talent continues to increase, Hong Kong's housing demand shows no sign of abating. With rental support, this will drive property prices to continue rising in the fourth quarter. In addition, at the latest US interest rate meeting, Hong Kong banks did not follow the pace of rate hikes, which also strengthened buyers' confidence in entering the market. Meanwhile, the recent meeting between the Chinese and US heads of state also reflected harmonious relations between the two sides, which is positive news for the property market. Recently, the primary market has been flourishing, with over 1,100 transactions recorded so far this month. The month is expected to record about 1,500 transactions, a rise of nearly 30% compared with 1,095 recorded last month, and October is expected to exceed 2,000 transactions.