Hong Kong home prices forecast to rise 15% this year
Midland Realty predicts Hong Kong residential property values will increase 15 percent by year-end, driven by accelerating new launches and stabilizing transaction volumes despite high rental rates.
Hong Kong home prices are projected to reach 15 percent higher levels than last year. Midland Realty provided this forecast during a Thursday press conference. The outlook remains below the city's peak of 2021 but relies on current market momentum. Executives from the agency expect bank interest rates in Hong Kong to remain steady, avoiding increases that the Federal Reserve might implement. Dave Ma Tai-yeung, CEO of Midland Residential, noted that investors returned to the market as geopolitical and economic uncertainties became clearer. New property launches accelerated under these improved conditions. First-hand transaction volumes rebounded from 800 units in mid-year to 1,100 units in August. The agency predicts first-hand sales will grow 50 percent quarter on quarter to 5,100 units by the end of the year. Secondary market transactions are also expected to rise 10 percent to 12,700 units. Ma Tai-yeung added that rising rental rates create pressure for property prices to catch up with income levels.
