CRIC estimates that the return on investment in Hong Kong will continue to improve, and there will soon be a return to a balanced market for buying and renting.

Yang Mingyi, senior joint director of the research department of Centaline Property, pointed out that as the interest rate cutting cycle begins, major banks in Hong Kong have lowered their most favorable rates a total of 3 times, by a cumulative 0.625%. In February 2025, the interest rate for property H was 3.50%, aligning with rental yield levels and breaking the trend of property H interest rates being higher than the yield rate for the first time in nearly 2 and a half years (since August 2022). It is expected that the trend of CRI yield rate will continue to improve, with oversupply of rental properties coming to an end. It is anticipated that interest rates will continue to fall this year, widening the gap between CRI yield rate and property H interest rates. In February 2025, the latest CRI yield rate was reported at 3.50%, showing an increase of 0.06 percentage points month-on-month. In February, the decline in property prices in Hong Kong widened, while the rental trend improved, resulting in the yield rate exceeding the stagnant pattern of the previous 2 months, reaching a 13-year high similar to that of January 2012. After the relaxation of stamp duty policies, the property market in Hong Kong became more active in March. However, buyers actively absorbed quality properties at reasonable prices, and with low-priced new properties being promoted, the downward trend of property prices in Hong Kong did not stop. At the same time, rental prices remained high, leading to an anticipated increase in the yield rate in March, breaking the property H interest rate. In February 2025, the CRI_Mass yield rate was reported at 3.67%, showing an increase of 0.05 percentage points month-on-month. The CRI (small and medium units) yield rate was reported at 3.63%, showing an increase of 0.05 percentage points month-on-month, both returning to the levels of January 2012. The CRI (large units) yield rate was reported at 2.83%, showing an increase of 0.07 percentage points month-on-month, returning to the levels of February 2012. In terms of the four regions, the CRI_Mass yield rate for Kowloon was reported at 3.74%, showing an increase of 0.10 percentage points month-on-month. For Hong Kong Island, the CRI_Mass yield rate was reported at 3.56%, showing an increase of 0.03 percentage points month-on-month. For the Western New Territories, the CRI_Mass yield rate was reported at 3.70%, showing an increase of 0.01 percentage points month-on-month, a total increase of 0.07 percentage points over the past 2 months. For the Eastern New Territories, the CRI_Mass yield rate was reported at 3.62%, showing a decrease of 0.02 percentage points month-on-month. The yield rates for Hong Kong Island, Kowloon, the Eastern New Territories, and the Western New Territories were at levels similar to those in December 2011, November 2011, February 2014, and August 2012 respectively. Among the 143 residential estates, there were 6 estates in February where the rental yield reached 4.5% or above, the same as in April. The estates with higher yield rates included: Whampoa New Village 5.34%, Tsuen Wan Garden 4.79%, Park Vista Garden 4.78%, Greenery Garden 4.76%, Goodview Garden 4.73%, and Treasure Garden 4.72%. In terms of major residential estates, the yield rates were as follows: Kam Wah Village 4.03%, Cityplaza 3.48%, South Horizons 3.46%, Park Island 3.29%, Belvedere Garden 4.34%, Whampoa Garden 4.19%, Celestial Heights 3.99%, Laguna City 3.67%, City One Shatin 4.49%, Tai Wo Hau Garden 3.83%, City One Sha Tin 3.14%, The Capitol 3.07%, Arezzo 4.06%, The Beaumont 3.63%, La Costa 3.62%, and YohoTown 3.28%.