The "Hong Kong Property" Easy Property Price Index fell slightly by 0.1% week-on-week, with rents just 1.72% away from historical highs

Affected by developers clearing inventory at market prices, the latest Easy Property Price Index stands at 113.36 points, a slight weekly decline of 0.1%. The indices of the four major districts show two rising and two falling, reflecting uneven recovery progress, with trends continuing to be dominated by primary supply.

In terms of districts, both Hong Kong Island and East New Territories recorded increases. Hong Kong Island lacks new focal developments and relies solely on the remaining units of Yau Chan II and UPPER CENTRAL for support, leading to stronger bargaining power for second-hand owners. East New Territories benefited from the hot sales of the large new project SIERRA SEA, with two rounds of sales for Phase 2A quickly sold out, prompting developers to raise prices and launch Phase 2B, resulting in strong demand that significantly boosted the confidence of second-hand owners in the same area, who raised their asking prices.

In contrast, Kowloon and West New Territories were affected by several remaining units such as Park Vista, The Henley series, and Park Lane series being sold at market prices, forcing second-hand owners to expand their bargaining space in order to break through, leading to price pressure in both districts. Looking ahead, it is expected that developers will maintain aggressive pricing, with short-term property prices likely fluctuating between 110 and 116 points.

In the rental market, affected by seasonal factors, the latest Easy Rental Index stands at 116.5 points, a weekly decline of 0.37%, marking two consecutive weeks of decline, with three districts showing decreases and one an increase. Analysis indicates that January is traditionally a low season for rentals, leading to price adjustments in West New Territories, Kowloon, and Hong Kong Island. However, the current rental level is only 1.72% lower than the historical high of 118.54 points in August 2019, with the overall trend hovering at a high level.

The market expects that after the Lunar New Year, the rental peak season will begin, coupled with the government's promotion of the "Study in Hong Kong" brand and various talent programs to attract new residents, the actual housing demand will drive rental prices to challenge historical highs