Jones Lang LaSalle has released the "Hong Kong Residential Sales Market Overview" report, stating that the overall second-hand residential prices have fallen back to 2016 levels according to the Government Property Valuation Department's private residential price index. The recent decline of new project prices is more significant, with a decrease of more than 10% compared to similar projects in 2015, which adds further pressure to second-hand housing prices.

The overall second-hand residential price index has fallen back to the level of 2016, with a recording of 305.9 points in May 2024, which is close to 306.7 in November 2016. The price of first-hand residential property has also fallen to the earlier level. As of May 2024, the average price per square foot of Class A residence units (less than 431 square feet in practical area) in Yau Ma Tei in the first-hand transaction has decreased by 10.6% compared to 2015, from HKD22,768 to HKD20,346. Meanwhile, in Sheung Wan, the average price per square foot of Class A units in the same period has also decreased by 6%, from HKD23,424 to HKD22,022.

Jones Lang LaSalle pointed out that after the accumulated demand for property purchases was suddenly digested, the trading of residential properties has started to significantly weaken. Although developers have adopted a discount strategy, the sales rate is still difficult to improve significantly. On the first day of the opening, only 13 out of 63 units (20.6%) were sold at "The Haddon" in Hung Hom, while no units were sold at "The Campton" in Cheung Sha Wan on the first day of the opening.

In addition, the Hong Kong Monetary Authority issued guidelines to banks in June to make technical adjustments to the property mortgage loan counter-cyclical macro-prudential supervisory measures and other related regulatory requirements announced on February 28, which will expand the scope of the measures to include mortgage applications for temporary sale and purchase contracts signed before February 28, 2024, and self-use residential properties that are expected to be completed on or after February 28, 2024. This enables eligible users to apply for mortgage loans of up to 70%.

Li Yuanfeng, Senior Director of Jones Lang LaSalle's Project Strategy and Consulting Department, said that this move reflects that the government has taken relative action, but banks are still cautious about approving mortgages. Although there is still demand from users for purchasing properties, many have not been able to enter the market due to mortgage approval issues, affecting the volume of residential transactions.