Lei Fang: Hong Kong residential building prices and rent trends are polarized, the Hong Kong Special Administrative Region government should fully withdraw"The source of spicy"

LeQuad's "Hong Kong Monthly Property Market Report" pointed out that residential building prices in Hong Kong have been trending downwards in the past year, reaching a low not seen in 7 years. They still believe that the Hong Kong SAR government should fully withdraw cooling measures to reverse and stimulate the current sluggish market environment. In December last year, overall residential building prices in Hong Kong fell by 1.4% compared to the previous month. According to data from the Hong Kong Department of Rating and Valuation, Hong Kong's building prices fell by 6.8% throughout the year. The decrease in price in December narrowed, and the increase in residential transaction volume was mainly due to the meeting held by the Fed between the US and China in December, marking the third consecutive pause in rate hikes since July 2023, and suggesting three rate cuts in 2024. In contrast, with the increasing demand for residential properties, rental prices in Hong Kong continue to rise, with an overall rental increase of 6.6%, reaching the highest level in 4 years. In the past year, various talent schemes introduced by the Hong Kong government attracted overseas and mainland Chinese talents to enter Hong Kong, becoming the main demand in the rental market. The luxury property market remains strong, with several high-value transactions recorded. The market expects the Hong Kong "Budget" to introduce more support measures. Looking ahead, LeQuad predicts that Hong Kong retailers will take a cautious approach in expanding their market share. Cross-border consumption by Hong Kong residents to mainland China remains a serious challenge for the retail industry in Hong Kong. LeQuad predicts that retail sales in Hong Kong will continue to improve, but it will be difficult to return to pre-epidemic levels in the short term.