HK sees steepest prime property decline in Q2 2025

Prices fell 14.3% over the past 12 months.

Hong Kong’s prime residential property market recorded the steepest decline amongst 46 global cities in the second quarter of 2025, according to Knight Frank’s Prime Global Cities Index.

Prices fell 14.3% over the past 12 months and 11.7% in the last three months, placing the city last in the global ranking.

The global average for prime residential property rose just 2.3% over the year to June, marking the weakest annual growth since late 2023, whilst quarterly growth slowed to a 0.1% decline, down from 1.3% in the first quarter, as elevated borrowing costs continued to weigh on buyer sentiment and affordability.

Despite recent reductions in interest rates, higher financing costs persist, limiting price growth and testing market resilience.

Central banks in major economies have started easing inflationary pressures, but cautious approaches to interest rate cuts mean momentum in prime property markets remains subdued.

Strong fundamentals, including limited supply and ongoing wealth creation, may help support prices.