HK home prices ease slightly in July

Hong Kong's residential home prices have slightly decreased in July, marking the end of a 13-month price increase streak, according to data from the Rating and Valuation Department. The property price index for all sizes of homes fell by 0.46 percent to 321.5 in July. However, on a year-on-year basis, the index rose 11.6 percent. In the first seven months of the year, the index gained 7.3 percent.

Small and medium-sized flats saw a 0.46 percent price decrease in July, while luxury flats experienced a 0.31 percent decline, marking their first monthly price drop in a year. Residential property prices have risen by 7.3 percent year to date, suggesting limited upside in the short term. The residential market is expected to enter a consolidation phase in the coming months, according to Eddie Kwok, Executive Director of CBRE Hong Kong's Valuation & Advisory Services.

New home transaction volumes are anticipated to decline in the second half of the year, leading to a slight drop in overall 2026 new home sales, Kwok added. Meanwhile, rent levels hit new highs, with the rental index by the Rating and Valuation department recording a 0.77 percent gain to 207.4 in July—the ninth consecutive monthly increase. The cumulative gain in the first seven months of the year reached 3.4 percent.