Home prices down 7.8% in Q1: report

High borrowing cost weighed the market but could improve after interest rate cut.

Hong Kong recorded a 7.8% drop in 12-months real home prices in Q1 2025, the largest decline amongst the 55 global housing markets investigated by Knight Frank and lower than their weighted average of 0.4% drop same period.

High interest rates continue to dampen Hong Kong homebuyers' enthusiasm, with borrowing costs exceeding pre-pandemic level.

The market remained depressed during the first quarter, with nominal house price falling 1.6%.

However, with more and more central banks across the world seeing interest rate cuts in 2025, the real estate market may see improvement.