Residential prices inch up by 0.6% MoM in November

Overall residential market sentiment improved in Q4.

Hong Kong’s housing price index edged up by 0.6% month-on-month in November, narrowing the cumulative drop in the first ten months of the year to 6.8%, according to a Cushman & Wakefield report.

Mid-and-small size unit price index slightly rose by 1% in the fourth quarter (Q4); whilst home prices in popular estates across segments also rose.

Small-sized market prices rebounded by 13.5% quarter-on-quarter (QoQ) whereas middle-sized market prices increased by 0.7% QoQ. Prices for the luxury market also moved up by 0.5% QoQ.

"The U.S. Federal Reserve has cut interest rates and Hong Kong following suit has prompted potential buyers to reassess and compare the performance of banks' deposit rates versus residential rental yields,” Rosanna Tang, executive director for Hong Kong at Cushman & Wakefield, said.

Moreover, overall residential market sentiment improved in Q4. The report forecast that residential transactions in Q4 will reach 15,800 units, up by 54% QoQ and by 108% year-on-year, bringing the full-year transaction volume to 53,800 units.

“Looking ahead to 2025, if interest rates continue to stay on a downward trend, and the stock market remains stable, we expect residential transaction volume will increase by 5% to 8% to a level of 56,000–58,000 units, supporting an overall price rebound in the range of 5%,” Tang added.