The "Hong Kong Property" Easy Property Price Index slightly fell by 0.25% week-on-week, expected to see steady fluctuations in property prices in the short term

The latest Yifa Property Price Index reports 115.37 points, a slight weekly decline of 0.25%, with a cumulative increase of 0.51% in the first two months of this year. Buyers are adopting a wait-and-see approach due to the launch of several new developments in various districts in March, leading to a short-term consolidation of overall property prices. The trends in the four major districts are polarized, with Kowloon and Hong Kong Island driven by strong sales of first-hand properties, rising weekly by 1.59% and 0.32% respectively; while the New Territories are relatively soft due to a lack of focus.

In contrast, the rental market is performing strongly. The latest Yifa Rental Index reports 117.24 points, a weekly increase of 0.45%, just 1.1% away from its historical high. Benefiting from the approaching traditional rental peak season and the gradually impactful "Study in Hong Kong" policy, the continuous influx of non-local students and professionals is driving up the demand for actual housing, making it highly likely that the rental index will challenge the historical high of 118.54 points in the short term.

Looking ahead, although the new budget proposal raises the luxury property stamp duty by over HKD 100 million, coupled with geopolitical tensions in the Middle East, industry assessments suggest limited actual impact on the market, which may instead attract safe-haven capital inflows. Overall, it is expected that short-term property prices will steadily fluctuate within the range of 112 to 120 points; driven by rising rental returns and safe-haven capital demand, medium to long-term property prices are expected to gradually rise, poised to challenge the historical high of 2021 once again