Hong Kong Property Market Trends 2025

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According to the latest announcement by the Rating and Valuation Department, the private domestic price index in February 2025 was 284.7 points, a decrease of approximately 0.87% month-on-month, marking a decline for three consecutive months and hitting the lowest point since July 2016. In the same month, the private domestic rental index was 193.5 points, an increase of about 0.31% month-on-month, rising for three consecutive months.

The recent trends in Hong Kong's property market have drawn considerable attention—private residential prices continue to fall, while rents are rising against the market trend. This phenomenon has not only puzzled investors but also presented different challenges and choices for tenants and property owners. What factors have contributed to such a market situation? Let’s explore the latest trends in Hong Kong’s property market in 2025.

Prices Continue to Decline

Despite the overall pessimistic outlook of Hong Kong's property market, some underlying changes are still reflected in the market. The continuous decline in prices is mainly influenced by the following factors:

• Weak Market Sentiment: Increased economic uncertainty has led real estate investors to reduce transaction volumes, further exacerbating downward pressure on prices.
• Policy Impact: Although the government may stimulate the market in certain aspects by adjusting policies such as stamp duty, an oversupply in the short term remains inevitable.

Rent Rises Against Market Trend

Despite the downward trend in property prices, rents are actually rising against the market trend. This phenomenon highlights the unique dynamics of Hong Kong's rental market, which can be attributed to several key factors:

• Influx of Talent: The Hong Kong government actively promotes policies to attract overseas and mainland professionals, such as the "Top Talent Pass Scheme" and "Quality Migrant Admission Scheme," generating steady demand in the rental market. As more professionals come to Hong Kong for work, the demand for high-quality housing increases, driving up rents.
• Trend of Mainland Students: The number of mainland students coming to Hong Kong for studies continues to grow each year, creating significant demand for student dormitories and nearby rental properties. Areas close to universities and academic institutions, in particular, experience faster rent increases.

Despite falling property prices, the rising rent trend has led some property owners to continue leasing their properties to offset the impact of declining prices. However, tenants—especially foreign professionals and students—face increasing financial pressure due to rising rents. Some may opt for more cost-effective areas or smaller units to reduce expenses.

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