Colliers International: It is expected that the contradiction of rising prices and falling rents for private residential properties in Hong Kong will continue into the second quarter.

The Hong Kong Rating and Valuation Department announced on April 28 that the private residential property price index in Hong Kong fell by about 0.49% month-on-month in March, marking the fourth consecutive month of decline. However, despite the off-peak rental season, rental prices continued to rise with the private residential rental index increasing by about 0.1% month-on-month in March, marking the fourth consecutive month of increase. Meanwhile, the average rental price of private residential properties in Hong Kong, calculated by usable area, was reported to be around HK$37.87 in March according to the "Rental Trend Chart" from Midland Realty. This represented an increase of about 0.16% month-on-month, reaching a new high in five months and a 0.53% increase in the first quarter of this year. Midland Realty's Chief Analyst, Liu Jiahui, expects the rental season to pick up in the second quarter, with mainland students coming to Hong Kong for the new academic year, as well as continued influx of foreign talents for work, all contributing to further rental price increase. It is predicted that the divergence of "rental increase and price decrease" will continue in the second quarter. Liu Jiahui pointed out that the property price index continued to decline in March, as it did not reflect the positive measures for the property market introduced in the budget. Following the budget announcement, the property market showed signs of improvement with prices stabilizing slightly. According to the "Midland Property Price Index," the latest data released on April 28 showed a reading of 127.34 points, with a slight increase of 0.2% weekly and 0.72% increase compared to four weeks ago. However, the latest "Midland Property Price Index" has not yet reflected the impact of the significant fluctuations in Hong Kong stocks due to the US announcement of retaliatory tariff measures. As of this year, the property price index has still fallen by 0.62%.