Midland: The signal for a clear recovery in property prices has emerged, with the average price per square foot in the top ten housing estates rising over 9% from the lowest point

The Rating and Valuation Department announced the private residential price index for October, indicating that property prices have risen by approximately 1.76% in the first ten months of this year, with a month-on-month increase of 0.41%. This marks the first occurrence of five consecutive months of increases since 2021. Midland Realty analyst Sam Chen pointed out that the message of property prices bottoming out and rebounding is clear. The latest Midland Property Price Index reported 131.92 points on November 24, showing a 2.96% increase in property prices year-to-date, which is a 4.47% rise from the year's low. With expectations of further interest rate cuts by the Federal Reserve in December, coupled with a significant rise in Hong Kong stocks this year, continuous improvement in the local economy, a decrease in inventory, and a strong rise in rents after breaking previous highs, not only has this enhanced the willingness of some users to switch from renting to buying, but it has also attracted long-term investors to actively enter the market. Driven by multiple favorable factors, there is a chance that property prices will reach the expected 5% increase for the year, breaking a three-year downward trend, and with rents also breaking previous highs, it is expected that this year will see the first occurrence of simultaneous increases in both prices and rents in four years.

As property prices rebound from their lows, some benchmark estates have seen increases that "outperform the market." Calculating based on the top ten estates, the latest average price per square foot has risen by approximately 3.9% to 9.1% from the year's low. According to data compiled by the Midland Realty Research Center from the Land Registry, the estate with the largest increase in average registered usable price in November compared to the year's low is Ocean Park, which rose by about 9.1%; Taikoo Shing and Caribbean Coast recorded increases of approximately 8.9% and 8.2%, respectively; Mei Foo Sun Chuen rose by about 7.3%; Whampoa Garden, New Town Plaza, and Laguna City all rose by over 6%; and Kornhill Garden, Shatin First City, and Ying Wan Garden recorded increases of approximately 5.7%, 4.9%, and 3.9%, respectively.

Regarding rents, the department revised the rental index for September to 200.2 points, breaking the previous record high of 200.1 points set in August 2019, indicating a peak trend. The rental index for October remained flat month-on-month, developing sideways at a high level. Sam Chen noted that Midland's "Rental Price Trend" also reached a peak this year, with the average rent per usable square foot for private residential properties in October reported at approximately HKD 38.71. In the first ten months of this year, rents have cumulatively risen by approximately 2.76%, marking three consecutive years of increases, and are about 0.99% higher than the previous record high of HKD 38.33 set in July 2019. Due to the sustained strong demand for housing in Hong Kong, coupled with the government's active recruitment of talent, there is new demand for housing in Hong Kong, providing positive support for rents. It is believed that the situation of simultaneous increases in both prices and rents will continue this year, marking the first occurrence in four years