Midland Realty: Hong Kong property prices rose by 11.56% in the first half of the year, the largest half-year increase in 8 years.

Yang Mingyi, Senior Joint Director of the Research Department of CRIC, pointed out that the latest Central Plains City Leading Index (CCL) reported 160.77 points, up 0.52% weekly, reflecting the market condition during the World Cup opening week on June 12th. The property prices continue to rise, with CCL rising for 5 consecutive weeks, totaling 2.11% and crossing the 160-point level, reaching a new high in 147 weeks (nearly 3 years) since early September 2023. The property prices rose by 11.56% in the first half of this year, the largest increase in the past 8 years since the 13.20% increase in the first half of 2018, significantly surpassing the 4.70% annual increase in 2025 by 6.86 percentage points. However, with a decline in Hong Kong stocks, developers slowing down the launch of new projects, and second-hand owners taking a tough stance in the property market, recent transaction volumes have significantly decreased. Additionally, with a possible interest rate hike in the US, it is believed that the increase in property prices will narrow. Looking ahead, the CCL target for the third quarter is to test 165 points, which will be achieved with an increase of 4.23 points or 2.63%. Since the interest rate cut in May 2025, property prices have bottomed out and started to rise, coupled with the stimulus from the two interest rate cuts by local banks last year, the CCL has risen by 18.95% from the low point of 135.16 points in the week when H interest rates were lower than the previous peak in May last year. Compared to the low point of 134.89 points before the financial case in March 2025, CCL has risen by 19.19%, compared to the low point of 135.86 points before the first interest rate cut in September 2024, it has risen by 18.34%, and compared to the historical high of 191.34 points in August 2021, the decline has narrowed to 15.98%. On July 2nd, the Hang Seng Index closed above 23,000 points, on July 3rd, the first area in the Northern Capital tested the Hung Hom Bridge area, with Ho Man Tin Yuyi Tianhai offering 18 units for sale, and Tai Wai Pak O Estate III offering 8 units for sale. On July 4th, Chai Wan Hyde Garden Phase 1 offered 28 units for sale in a bidding format. The impact on the local second-hand property prices will only be reflected in the CCL to be announced at the end of July 2026. Since the official date of the sales contract, compared to the end of 2025, all eight major property index in the first half of 2026 have risen, with six of them increasing by over 10%. CCL rose by 11.56%, CCL Mass rose by 11.72%, CCL (small and medium-sized units) rose by 11.56%, CCL (large units) rose by 11.53%, Hong Kong Island rose by 17.09%, Kowloon rose by 11.33%, New Territories East rose by 8.71%, and New Territories West rose by 9.17%. The price increase on Hong Kong Island has significantly outperformed the overall market.