HK home prices ease slightly in July

Hong Kong's residential home prices have experienced a slight decline after 13 months of continuous growth, according to the Rating and Valuation Department. The property price index, which measures the average prices of homes of all sizes, decreased by 0.46 percent to 321.5 in July. However, on a year-on-year basis, the index increased by 11.6 percent. For the first seven months of the year, the index rose by 7.3 percent.

In terms of flat size, both small and medium-sized flats saw a 0.46 percent decline in July, while luxury flats experienced their first monthly decline in a year, with prices falling by 0.31 percent. Despite the year-to-date increase of 7.3 percent, further price growth in the short term is expected to be limited. Eddie Kwok, Executive Director of Valuation & Advisory Services at CBRE Hong Kong, predicts that the residential market will enter a consolidation phase in the coming months.

He also anticipates a fall in new home transaction volumes in the second half of the year, leading to a slight decline in overall 2026 new home sales.

Interestingly, rent levels reached new highs in July, with the rental index by the Rating and Valuation Department rising by 0.77 percent to 207.4. This marks the ninth consecutive monthly gain, with a cumulative increase of 3.4 percent over the first seven months of the year.