The Rating and Valuation Department announced today (26th) the private residence price index for August. Kavin Wong, Executive Director of Valuation and Consulting Services at CBRE Group Hong Kong, stated that developers offering more incentives and attractive prices are putting pressure on the secondary residential market. Despite the continued decline in property prices, the expected interest rate cut by the Federal Reserve has begun, narrowing the decrease in residence prices.

With the Fed's rate cut, major banks in Hong Kong have already lowered the Prime Rate, which may support the residential property market. Kavin Wong expects property prices to stabilize in the short term. Looking ahead, in the current situation with more unsold units, developers may cash out at discounted prices, putting pressure on property prices.

On the rental front, data from the Rating and Valuation Department shows a 1.1% increase in residential rents compared to the previous month, and a 6.8% increase from the same period last year. During the summer period, as non-local students arrive in preparation for the new academic year, lodging demand typically increases. Some developers even adjust their strategy to switch from selling to renting to capture strong leasing demand. Looking ahead, the rate of increase in residential rents may slow down as tenants may transition to ownership, and developers may shift more units from sales to rentals to increase the supply of rental lodging.