2025-07-11 28Hse Editor
Home Prices Down 0.37% in First Half of 2025
Boosted by the relaxation of stamp duty policies and a decline in the Hong Kong Interbank Offered Rate (HIBOR), the property market has recently stabilized. The EPRC Property Price Index climbed to 107.31, marking a third consecutive weekly increase. Year-to-date, property prices have only slipped by 0.37%. With fewer new launches, purchasing power has shifted to the secondary market, driving price increases across all four major regions. The New Territories East led with a 0.71% rise, followed by price gains in Kowloon and New Territories West. Hong Kong Island saw only a slight increase due to price-cut promotions diverting demand. Transactions in the top 10 housing estates rose 8.3% week-on-week, reflecting healthy market activity. Looking ahead, if U.S. interest rate cuts materialize, it could further ease mortgage burdens and support the index within the 106–108 range.
Separately, the peak rental season began early in June this year, driven by demand from mainland students and professionals. The EPRC Rental Index stood at 115.39, holding a high level for the seventh consecutive week. Rents rose in New Territories East and West, while they dipped slightly in Hong Kong Island and Kowloon, resulting in a "two up, two down" pattern.
Latest Index: 107.31, Slight Weekly Rise of 0.01%
The Eva Property Index recorded a marginal weekly increase of 0.01%, reflecting market conditions from June 27 to July 3, 2025. Although modest, the index has held above the 107-point threshold, near its early-year peak, suggesting initial signs of stabilization. Despite remaining at an 8.5-year low, the decline has narrowed to just 0.37% for the year.
Stability is attributed to positive sentiment in the new property market and declining HIBOR, which helped release more purchasing power. Although HIBOR ticked up slightly recently, it still hovers near lows not seen since September 2022, aiding mortgage affordability.
According to agency statistics, the last weekend of H1 saw 13 transactions in the top 10 estates, an 8.3% week-on-week rise. Some agencies even reported double-digit deals for five consecutive weeks, signaling robust support in the secondary market. With two potential U.S. interest rate cuts expected in H2, further mortgage relief could boost buying sentiment and help the property price index regain momentum, likely hovering between 106 and 108 points in the coming quarter.
All Four Regional Price Indices Rise; NT East Sees Strongest Gain of 0.71%
With no major new launches last week, buying power temporarily returned to the secondary market, lifting overall transaction sentiment. All four regional indices posted gains. New Territories East led with a 0.71% weekly rise to 111.32 points, returning to January levels. Kowloon rebounded to 105.33, up 0.56% weekly. New Territories West climbed for the second week to 110.12, up 0.32%.
Hong Kong Island rose slightly by 0.18% to 92.91 points. However, its weaker performance was influenced by the price-slashing promotion at the “The Sail” project in Sai Ying Pun, which sold all 33 units in a single day, drawing away some demand and putting pressure on overall prices in the region.
In summary, the secondary market became temporarily more active during the pause in new launches, though individual districts showed varied performance due to competitive developments.
Eva Rental Index Steady at 115+ for 7 Weeks; Mixed Regional Trends
As the traditional rental peak season kicks in, and many mainland students begin arriving in June to prepare for school, areas near universities like Sha Tin, Tai Po, and Kowloon Tong have seen noticeable increases in rental demand, boosting transaction activity.
Although the latest EPRC Rental Index slightly declined by 0.03% to 115.39, it has held above 115 for seven straight weeks, indicating continued rental strength.
Performance varied by district:
New Territories East led for the third week, rising 0.97% to 118.09, fueled by school-network demand in areas like Sha Tin and Tai Wai.
New Territories West rose 0.37% to 133.59, showing ongoing rental momentum.
Hong Kong Island and Kowloon, however, saw rent decreases of 1.54% and 0.73%, to 118.73 and 116.17 respectively, due to limited listings and landlords raising rents, causing tenants to hesitate or delay decisions.
Note: The indices reflect market activity from June 27 to July 3, 2025.
Like
