The Centaline Property Valuation Index (Major Banks) CVI rose by 8.04 points weekly, marking two consecutive weeks of increase
Yang Ming-yi, Senior Co-Director of the Research Department at Centaline Property, pointed out that this week the Centaline Valuation Index (Major Banks) CVI reported a latest value of 81.47 points, an increase of 8.04 points from last week's 73.43 points. The hot sales of new properties have boosted market sentiment, with the CVI rising for two consecutive weeks, totaling 9.09 points, breaking the 80-point level for the first time since the end of October last year. Major banks have raised mortgage rebates and extended fixed-rate plans, reflecting a positive and optimistic attitude towards mortgages. The CVI has remained above 60 points for 16 consecutive weeks, indicating a steady upward trend in property prices.
Yang Ming-yi noted that the Federal Reserve will hold a monetary policy meeting next week, and the market expects a slowdown in interest rate cuts. However, local interbank rates have recently declined, easing the pressure on banks' funding costs, which is beneficial for attracting mortgage business.
After the government fully withdrew the cooling measures at the end of February 2024, transaction volumes in the property market rebounded, and the CVI rebounded from a low level. During the same period, the CCL stopped falling and stabilized from a low of 143.02 points. The CVI has risen for 9 consecutive weeks from 14.49 points, reaching a high of 73.73 points, and has remained above 60 points for 6 consecutive weeks. The CCL has escaped from its low and has been fluctuating within a narrow range between 144 points and 148 points. However, the CVI later fell into the range of 40 to 60 points, indicating a weakening momentum for property prices, with a threat of downward adjustment. In early June, the CVI further dropped below 40 points, remaining in a pessimistic zone for nearly 20 weeks, reflecting that the property market has entered an adjustment phase. During the same period, property prices continued to adjust downward, evaporating all gains made after the withdrawal of cooling measures. After the interest rate cut cycle began in September and the policy address in October, the CVI steadily rose, surpassing the important thresholds of 40 and 50 points, while property prices stabilized repeatedly during the same period.
The latest CCL reported 144.63 points, an increase of 7.01% from the low of 135.16 points during the week when the May H mortgage rate fell below the capped rate again, and a rise of 7.22% after the budget relaxed stamp duty, compared to the low of 135.86 points before the interest rate cut cycle, an increase of 6.46%. Property prices are expected to rise by 4.70% for the whole year of 2025 and temporarily increase by 0.36% in 2026.
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