The "Hong Kong Property" Easy Property Price Index rose by 0.82% weekly, while the rental index slightly fell by 0.2%

The latest Yifa Property Price Index is reported at 115.63 points, up 0.82% week-on-week, showing signs of an intensified upward trend. The index has risen 2% from a low of 113.36 points, still about 20.67% below the historical high of 2021, making it attractive for capital inflow. The upward momentum is mainly driven by improvements in the macro economy and strong sales of new developments. The Hang Seng Index has risen above 27,000 points, improving the investment atmosphere, and with mainland buyers recording over a thousand transactions for 11 consecutive months, developers have begun to reduce discounts or even raise prices, successfully boosting the confidence of second-hand property owners.

The Yifa Rental Index is reported at 116.27 points, down 0.2% week-on-week, marking a decline for two consecutive weeks. The rental market is under short-term pressure due to seasonal effects and a slowdown in talent program applications, along with falling interest rates prompting some tenants to "rent to buy." Performance varies across regions, with declines in Hong Kong Island and New Territories East, where the drop in Hong Kong Island is more pronounced, while Kowloon and New Territories West have stopped declining and are recovering.

Despite the soft market conditions, the government's promotion of "Study in Hong Kong" and the relaxation of non-local student quotas are expected to support future demand for student accommodation. Looking ahead, property prices are expected to consolidate between 112 and 120 points, while rents are likely to challenge historical highs in the next two months, with an estimated annual increase of between 2% and 4%. (ha/)