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Business Times
28-05-2025
- Business
- Business Times
Hong Kong home prices snap falling streak in April
[HONG KONG] Hong Kong's home prices ended four months of decline and edged up in April, government figures showed on Wednesday (May 28), as falling mortgage rates helped lift buying sentiment. Private home prices rose 0.4 per cent in April from the month before, following a revised 0.3 per cent fall in March, data from the Rating and Valuation Department showed. The prices have dropped 1.2 per cent so far this year to their lowest level since 2016. Home prices in Hong Kong, one of the world's most unaffordable cities, have tumbled nearly 30 per cent from a 2021 peak, hurt by higher mortgage rates, a weak economic outlook, and poor demand as many professionals have left the territory. Authorities tried to prop up the sector last year, lifting all curbs on property purchases and relaxing down payment ratios, but housing demand has remained soft. Realtors forecast home prices in 2025 could rise or fall by 5 per cent, depending on the pace of official rate cuts and the severity of trade tensions between China and the United States. Eddie Kwok, executive director of real estate consultancy CBRE, said if the interbank rate continues to fall, the residential property market may see a recovery as it may cost less to repay mortgage as compared to rent. One-month Hong Kong dollar interbank rate Hibor, which many of the mortgage plans are linked to, hit a fresh three-year low this week, making mortgage rates more affordable for home buyers. REUTERS
RTHK
28-05-2025
- Business
- RTHK
HK home prices rebound 0.35pc in April
HK home prices rebound 0.35pc in April A valuation expert says significant rebounds in property prices are still unlikely this year as developers may continue to cut prices. Photo: RTHK Hong Kong's lived-in home prices rebounded in April, capping a four-month decline. Official figures released by the Rating and Valuation Department on Wednesday showed that the home price index rose to 285.7 in April, up 0.35 percent from a month earlier, but that was still 7.7 percent lower from a year ago. For the first four months of the year, however, the gauge declined 1.21 percent. While prices of small and medium-sized units rose by 0.35 percent month on month on average, that for large units rose higher, 0.42 percent. Rental prices, meanwhile, continued to head north for the fifth consecutive month, and rose by 0.31 percent to 193.7 last month, or 3.64 percent higher over a year ago. For the first four months, the rental gauge was up by 0.62 percent. Commenting on the figures, Eddie Kwok, executive director of valuation and advisory services at CBRE Hong Kong, said residential prices had stabilised and were bottoming out. "Positive carry for residential properties resurfaces as the one-month Hong Kong interbank offered rate [Hibor] dropped in May," he said. The one-month Hibor rate, which is linked to local mortgage loans, fell to its lowest point in nearly three years last week, thanks to a flood of liquidity entering the city's capital markets. "If this trend can be sustained, the residential property market is likely to experience a recovery as it might cost less to repay mortgages as compared to renting," Kwok said. "And this is likely to attract buy-to-lease investors and end-users entering the residential property market eventually." But Kwok noted that significant rebounds in prices are still unlikely this year as developers that are keen to clear out their mounting inventories might take the opportunity to replenish their capital and continue to cut prices. The Hong Kong Monetary Authority has warned that Hibor rates may still rebound.
New Straits Times
28-05-2025
- Business
- New Straits Times
Hong Kong home prices snap falling streak in April
HONG KONG: Hong Kong's home prices ended four months of decline and edged up in April, government figures showed on Wednesday, as falling mortgage rates helped lift buying sentiment. BY THE NUMBERS Private home prices rose 0.4 per cent in April from the month before, following a revised 0.3 per cent fall in March, data from the Rating and Valuation Department showed. The prices have dropped 1.2 per cent so far this year to their lowest level since 2016. WHY IT'S IMPORTANT Home prices in Hong Kong, one of the world's most unaffordable cities, have tumbled nearly 30 per cent from a 2021 peak, hurt by higher mortgage rates, a weak economic outlook, and poor demand as many professionals have left the territory. Authorities tried to prop up the sector last year, lifting all curbs on property purchases and relaxing down payment ratios, but housing demand has remained soft. MARKET COMMENTS Realtors forecast home prices in 2025 could rise or fall by 5 per cent, depending on the pace of official rate cuts and the severity of trade tensions between China and the United States. Eddie Kwok, executive director of real estate consultancy CBRE, said if the interbank rate continues to fall, the residential property market may see a recovery as it may cost less to repay mortgage as compared to rent. CONTEXT One-month Hong Kong dollar interbank rate HIBOR, which many of the mortgage plans are linked to, hit a fresh three-year low this week, making mortgage rates more affordable for home buyers.
Reuters
28-05-2025
- Business
- Reuters
Hong Kong home prices snap falling streak in April
HONG KONG, May 28 (Reuters) - Hong Kong's home prices ended four months of decline and edged up in April, government figures showed on Wednesday, as falling mortgage rates helped lift buying sentiment. Private home prices rose 0.4% in April from the month before, following a revised 0.3% fall in March, data from the Rating and Valuation Department showed. The prices have dropped 1.2% so far this year to their lowest level since 2016. Home prices in Hong Kong, one of the world's most unaffordable cities, have tumbled nearly 30% from a 2021 peak, hurt by higher mortgage rates, a weak economic outlook, and poor demand as many professionals have left the territory. Authorities tried to prop up the sector last year, lifting all curbs on property purchases and relaxing down payment ratios, but housing demand has remained soft. Realtors forecast home prices in 2025 could rise or fall by 5%, depending on the pace of official rate cuts and the severity of trade tensions between China and the United States. Eddie Kwok, executive director of real estate consultancy CBRE, said if the interbank rate continues to fall, the residential property market may see a recovery as it may cost less to repay mortgage as compared to rent. One-month Hong Kong dollar interbank rate HIBOR , which many of the mortgage plans are linked to, hit a fresh three-year low this week, making mortgage rates more affordable for home buyers.
Time of India
28-04-2025
- Business
- Time of India
Home prices in Hong Kong fall 0.5% in March
HONG KONG : Hong Kong's home prices slipped for a fourth month in March, government figures showed on Monday, as the ailing property market faced more economic headwinds. By the numbers Private home prices fell 0.5% in March from the month before, following a revised 0.6% decline in February, data from the Rating and Valuation Department showed. The March price index was the lowest since July 2016. Why its important Home prices in Hong Kong , one of the world's most unaffordable cities, have tumbled nearly 30% from a 2021 peak, hurt by higher mortgage rates , a weak economic outlook, and poor demand as many professionals have left the territory. Authorities tried to prop up the sector last year, lifting all curbs on property purchases and relaxing down payment ratios, but housing demand has remained soft. Market comments Realtors forecast home prices in 2025 could rise or fall by 5%, depending on the pace of official rate cuts and the severity of trade tensions between China and the United States. Eddie Kwok, executive director of real estate consultancy CBRE, said investment appetite was again negatively affected in April due to global uncertainty, and it could lead to a slight decrease in home prices in the next few months as potential buyers take a wait-and-see approach. Martin Wong, director of Knight Frank, said the U.S. might lower interest rates again soon to stimulate the economy, and Hong Kong would follow suit and benefit the property market. Context The government in February cut the stamp duty for small home transactions. Homes with values of HK$3 million to HK$4 million ($385,847-$514,462) now have to pay just HK$100 in stamp duty, instead of up to HK$60,000. Property agents said the move could encourage first-time buyers and lift home transactions by 5%-10%. Major banks lowered their best Hong Kong lending rate in December by 25 basis points for the third time last year. The territory's currency is pegged to the U.S. dollar, but local banks make their own rate decisions.
