Hong Kong residential prices dip 0.5% in July, ending over a year of gains

The Rating and Valuation Department reported that private home prices in Hong Kong decreased by 0.5% in July, marking the first monthly decline since March 2025. This follows a revised 0.2% gain in June after a period of steady appreciation. Over the first seven months of the year, prices have risen 7.3%, and they remain 12.8% higher than the March 2025 trough.

Market observers expect a short-term consolidation after a prolonged rally, citing pressure from a stock-market correction and stricter outbound investment curbs imposed by mainland China. Nonetheless, the city’s property market continues to benefit from strong sentiment, buoyant equity markets, and demand from an increasing number of mainland Chinese professionals. An easing of housing oversupply has also helped sustain price levels, and the market recorded its first annual increase last year after a near-30% fall from its 2021 peak.