Hong Kong – The Rating and Valuation Department has released the latest home price index, showing that residential property prices in Hong Kong edged up 0.4% month-on-month in April 2025, marking a pause in the downward trend that persisted over the previous four months.
Commenting on the development, Eddie Kwok, Executive Director of Valuation & Advisory Services at CBRE Hong Kong, said the residential market is showing signs of stabilisation. A key factor behind this shift is the decline in the 1-month HIBOR during May, which has reignited the positive carry for homebuyers.
“If this easing trend in HIBOR continues, the cost of mortgage repayment could fall below rental levels,” Kwok explained. “This would likely attract buy-to-lease investors and end-users back into the residential market progressively.”
Despite signs of recovery, CBRE does not anticipate sharp price increases in 2025. Kwok noted that many developers remain focused on clearing unsold inventory. While some may take the opportunity to replenish capital, others with stronger financial positions may moderate price cuts rather than offer steep discounts.
Overall, the market appears to be bottoming out, though a full-fledged rebound will depend on sustained improvements in financing conditions and buyer sentiment.
