Hong Kong's property price index rebounded in October after falling, CBRE expects blue-chip estates and newer projects to recover or rebound first
1min read Hong Kong property prices rebounded after five months of decline. On November 27, Hong Kong Land Registry announced the private residential price index in October. The private residential price index in October was 290.1, ending a five-month decline, up more than 0.6% month-on-month and 9.9% year-on-year, with a cumulative decline of 6.8% in the first 10 months of this year. Executive Director of CBRE Hong Kong Valuation and Consulting Services Department Guo Wei En said that developers had reduced discounts or even slightly raised prices, which helped stabilize property prices. Therefore, CBRE expects property prices to bottom out and rebound in the short term.Guo Wei En said that Hong Kong property prices rebounded 0.6% month-on-month after five consecutive months of decline. With the major banks cutting their best lending rates and the Hong Kong government introducing a number of easing measures in the policy address, buyers entered the market after waiting for several months. This can support property prices and prevent further decline.Guo Wei En mentioned that with the entry of homebuyers and investors, the rebound of new and secondary property prices may vary. He expects that the prices of blue-chip estates and newer residential projects will first stabilize or rebound. On the other hand, the proportion of owners selling units at low prices is still high for older residential properties, leading to a slower recovery.In terms of residential rents, Guo Wei En pointed out that the rise in rents slowed after seven consecutive months of growth, with rents falling 0.3% month-on-month in October. However, as the end of the year is usually a low season, the rental price may experience a short-term adjustment due to seasonal factors, but the magnitude will not be large.
