--- title: "JLL: The Hong Kong property market is positively correlated with the Hang Seng Index, with property price trends lagging behind the stock market by 2.2 months" type: "News" locale: "en" url: "https://longbridge.com/en/news/273957262.md" description: "The \"Hong Kong Residential Sales Market Overview\" released by Jones Lang LaSalle points out that there is a significant positive correlation between the Hang Seng Index and the residential capital value in Hong Kong, with the residential capital value lagging behind the stock market by about 2.2 months. Although the stock market has rebounded recently, the residential capital value has not risen in tandem, but the decline has narrowed, and it is expected to receive support in the future. Improved market sentiment and expectations of interest rate cuts will boost investment confidence, but high inventory and macroeconomic uncertainty will still slow down the recovery pace" datetime: "2026-01-28T08:26:24.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/273957262.md) - [en](https://longbridge.com/en/news/273957262.md) - [zh-HK](https://longbridge.com/zh-HK/news/273957262.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/273957262.md) | [繁體中文](https://longbridge.com/zh-HK/news/273957262.md) # JLL: The Hong Kong property market is positively correlated with the Hang Seng Index, with property price trends lagging behind the stock market by 2.2 months According to the Hong Kong Residential Sales Market Overview released by Jones Lang LaSalle on January 28, the Hang Seng Index has averaged a lead of about 2.2 months over residential capital values in the past five years, indicating a significant correlation between the Hang Seng Index and residential capital values. This lag is mainly due to the low liquidity in the property market and the lengthy transaction registration process. Market data shows that since June 2020, the Hang Seng Index and residential capital values have shown synchronous trends. However, starting from July 2024, the trends diverged: the Hang Seng Index continued to rebound, while residential capital values did not rise in tandem but showed a significant narrowing of the decline, recording a slight recovery starting in August 2025. This phenomenon indicates that although there are differences in the volatility of the stock market and property prices, the basic directional consistency is maintained. Li Yuanfeng, Senior Director of Project Strategy and Consulting at Jones Lang LaSalle, stated that the strong performance of the stock market is expected to support the Hong Kong residential market in the near term. The market generally anticipates further interest rate cuts this year, which is expected to boost investment confidence. However, historical trends show that property price movements typically lag behind the stock market, reflecting a slower adjustment speed. Despite gradually improving market sentiment, high inventory levels and ongoing macroeconomic uncertainties will still slow down the recovery pace, and the firm holds a cautiously optimistic view on the market outlook. Jones Lang LaSalle noted that last year, the Hang Seng Index rebounded by 27.8% from the beginning to the end of the year. The average daily trading volume of the Hong Kong Stock Exchange (00388) reached HKD 249.8 billion in 2025, a significant year-on-year increase of about 90%. The secondary residential market in Hong Kong also gained momentum, with transaction volume recording 42,300 cases in 2025, a year-on-year increase of 16.9%; the total transaction amount reached HKD 299 billion, up 14.4% year-on-year. Zhong Churu, Senior Director of the Research Department at Jones Lang LaSalle, pointed out that historical trends over the past decade show a continuous positive correlation between the annual average daily trading volume of the stock market and the number of local secondary residential transactions. Data indicates that the activity level of the stock market and the scale of residential transactions have long maintained a high degree of synergy. The synchronous trend is mainly driven by the "wealth effect." She stated that when stock assets appreciate, investors perceive an increase in net worth, financial confidence improves, and they tend to diversify their asset allocation. The capital gains generated from stock investments often convert into liquid funds and flow into tangible assets, especially residential properties, which are regarded as a preferred stable investment form in Hong Kong. In summary, although there is no direct causal relationship between the stock market and the residential market, historical data shows a high degree of linkage between the two, reflecting overall macroeconomic sentiment ### Related Stocks - [Hang Seng Index (00HSI.HK)](https://longbridge.com/en/quote/00HSI.HK.md) - [CSOP HSI ETF (03037.HK)](https://longbridge.com/en/quote/03037.HK.md) - [ISHARESHSI (03115.HK)](https://longbridge.com/en/quote/03115.HK.md) - [TRACKER FUND (02800.HK)](https://longbridge.com/en/quote/02800.HK.md) ## Related News & Research - [Hong Kong economy showed resilience in first quarter of 2026, Paul Chan says](https://longbridge.com/en/news/281703217.md) - [Guangdong-HKGBA Returns to Profitability in 2025](https://longbridge.com/en/news/281116626.md) - [Hong Kong retail sales jump nearly 12% in first 2 months of year](https://longbridge.com/en/news/281346585.md) - [China's factory activity expands but price pressures intensify, private PMI shows](https://longbridge.com/en/news/281282781.md) - [China PMI slows to 50.8 as cost pressures hit two-year high](https://longbridge.com/en/news/281287548.md)