Knight Frank: Hong Kong's second-hand property prices are not expected to rebound significantly in the short term, and Hong Kong banks are expected to cut interest rates again this year

According to Wang Zhaoqi, Senior Director of Knight Frank, due to the impact of U.S. tariffs, global economic uncertainty has increased, and the Federal Reserve may cut interest rates by 0.25% again in October. It is expected that Hong Kong property prices will begin to improve in the coming months, rising by 2 to 3% for the whole of 2025, with a significant rebound expected in the first half of 2026, rising by 5% for the entire year. In the short term, Hong Kong's secondary property prices have not shown a significant rebound, and market purchasing power tends to favor new developments. It is anticipated that the transaction volume for both new and second-hand properties this year will reach between 60,000 and 62,000. Rental demand remains rigid, and it is expected that rents will rise by another 4 to 5% this year