Knight Frank: The Federal Reserve's interest rate cuts alleviate pressure on the Hong Kong property market, but a significant rebound in property prices will take time
Wang Zhaoqi, Senior Director and Head of Research and Consulting for Greater China at Knight Frank, stated that the U.S. is expected to announce a 0.25% interest rate cut in September, with another 0.25% cut likely within the year. The high interest rate environment's impact on the Hong Kong property market will gradually slow down. However, due to a certain increase accumulated since 2022, the market needs time to release purchasing power. In the short term, there is still insufficient purchasing power in the market, but it is believed that property prices will bottom out in 2025. He pointed out that in the coming months, the response to new developments will continue to be better than that of second-hand properties, and the pricing of new developments is quite attractive. Some developers are offering financial plans and rebates to buyers, effectively lowering the entry threshold for buyers. He expects that Hong Kong property prices will continue to hover at the bottom for the remainder of 2025, with an annual price decline of 0-3%, while a rebound of about 5% is anticipated next year. The adjustment of the property market will gradually improve, but currently, due to the still high inventory levels, there are no conditions for a significant rebound in property prices
According to the Zhitong Finance APP, Wang Zhaoqi, Senior Director and Head of Research and Consulting for Greater China at Knight Frank, stated that the United States is expected to announce a 0.25% interest rate cut in September, with another 0.25% cut likely within the year. The high interest rate environment's impact on the Hong Kong property market will gradually slow down. However, due to a certain increase accumulated since 2022, the market needs time to release purchasing power. In the short term, there is still insufficient purchasing power in the market, but it is believed that property prices will bottom out in 2025.
He pointed out that in the coming months, the response to new developments will continue to be better than that of second-hand properties. The pricing of new developments is also quite attractive, with some developers offering financial plans and rebates to buyers, effectively lowering the entry threshold for buyers. He expects that Hong Kong property prices will continue to hover at the bottom for the remainder of 2025, with an annual decline of 0-3%, while a rebound of about 5% is anticipated next year. The property market adjustment will gradually improve, but currently, due to the high inventory levels, there are no conditions for a significant rebound in property prices
