Hong Kong residential property prices record first monthly decline since March 2025

Hong Kong’s property market had enjoyed a prolonged period of recovery, with residential prices benefiting from improving sentiment and steady demand. But after months of gains, the market showed signs of losing some momentum in July, as buying activity came under pressure from developments in financial markets and tighter investment curbs in mainland China.

Private home prices in Hong Kong fell 0.5 per cent in July, marking their first monthly decline since March 2025, according to data from the Rating and Valuation Department released on Thursday. The fall came after a revised 0.2 per cent increase in June.

Despite the monthly decline, prices have risen 7.3 per cent during the first seven months of the year and are up 12.8 per cent from their trough in March 2025. Realtors expect the property market to undergo a short-term consolidation following its long period of gains. Buying demand has faced headwinds from a correction in stock markets and tighter curbs by China on outbound investment.

Hong Kong’s property market, among the least affordable in the world, has nevertheless received support from positive market sentiment, buoyant stock markets and firm demand from a growing number of mainland Chinese professionals. An easing oversupply of homes has also supported the market. Residential prices in the Asian financial hub recorded their first annual increase last year after falling by nearly 30 per cent from their 2021 peak.