Central Plains Real Estate: Hong Kong property prices have successfully found a bottom and have entered a gradual upward phase

According to the Zhitong Finance APP, Chen Yongjie, Vice Chairman of Central Plains Properties Asia Pacific and President of the Residential Department, stated that the June property price index reflects the second-hand transactions from May to June. The index has risen for three consecutive months, and although the increase is slight, it fully indicates that Hong Kong property prices have successfully bottomed out and entered a phase of gradual rise. Recently, the stock market has improved, with the Hang Seng Index surpassing the 25,000-point mark, reaching a new high in over three and a half years. Under the wealth effect, this is favorable for property market transactions. Additionally, with the recent easing of China-U.S. relations, U.S. President Trump has also indicated the need for the Federal Reserve to cut interest rates to stabilize government bond interest expenses. The market anticipates a significant chance of interest rate cuts by the Federal Reserve in the second half of the year, further boosting the trading atmosphere. In fact, Hong Kong's interbank rates and H mortgage rates have significantly declined in recent months, easing the burden of property purchases. Coupled with a supply surplus over rental demand, buyer confidence has clearly rebounded, and with increased transactions, Hong Kong property prices are back on the rise.

The Hong Kong Rating and Valuation Department has just released the property price index, reporting a private residential price index of 286.7 points for June 2025, a month-on-month increase of 0.03%, marking three consecutive months of increase, with a cumulative rise of 0.63%. In the first six months of this year, the decline in the property price index has narrowed to 0.86%. The rental index has also seen a month-on-month increase of 0.3%, rising for seven consecutive months, reaching a new high since September 2019.

In terms of primary market transactions, approximately 2,300 transactions were recorded in May, about 1,500 in June, and nearly 1,900 transactions have been recorded in the primary market so far this month, including several luxury property transactions. It is expected that there is a high chance of surpassing 2,000 transactions this month.

Regarding the rental index, it has risen for seven consecutive months. The market has recently entered the traditional peak rental season during the summer vacation, with many families moving during the break. A large number of overseas and mainland students are also rushing to rent before the new school year begins. Additionally, the Hong Kong government has been committed to attracting talent in recent years, resulting in substantial rental demand in the market. This month, Central Plains Properties facilitated approximately 2,300 rental transactions, an increase of over 40% compared to about 1,600 transactions during the same period last month. The rising rental transactions are driving rental appreciation, and it is believed that rental prices will continue to rise in the short term, further attracting investors to buy properties for rental income. As rental prices continue to rise, some tenants are also choosing to switch from renting to buying, enhancing the trading atmosphere. However, the future trend of Hong Kong property prices will still be influenced by factors such as the Hong Kong economy and the China-U.S. situation. If the U.S. announces interest rate cuts and the China-U.S. situation remains stable, it is believed that the upward trend of Hong Kong property prices in the second half of the year will be more certain