The Hong Kong private residential rental index has risen for nine consecutive months, while property prices have slightly adjusted. Midland Realty predicts that property prices will rise another 5% in the second half of the year.

The Hong Kong Rating and Valuation Department announced that the rental index for private residential properties in Hong Kong rose by approximately 0.78% month-on-month in July, marking the ninth consecutive month of increases and setting new historical highs. Andy Chan, an analyst at Midland Realty, stated that as the traditional rental season begins and demand for family relocations increases during the summer vacation, the rental market's performance is expected to improve further. Meanwhile, the government actively promotes Hong Kong as an international education hub, which has led to a continuous increase in the number of students coming to Hong Kong for studies, along with a steady influx of skilled professionals. This has injected new demand into the Hong Kong private residential rental market, providing support for rental prices. It is noteworthy that the Rating and Valuation Department also announced a month-on-month decline of approximately 0.46% in the private residential sales price index for July, with the rental index outperforming the sales price index for two consecutive months, positively supporting rental yields. Andy Chan pointed out that the Rating and Valuation Department's private residential rental index continues to rise, aligning closely with Midland's "Rental Price Trend" chart. According to the latest data, the average rent per square foot for private residential properties in July, calculated based on usable area, was about HKD 40.55, up approximately 1.35% month-on-month, achieving an increase for the seventh consecutive month. Following a record high set in January this year, it has shown a strong upward trend of hitting new peaks every month for seven months, with a cumulative increase of approximately 4.7% in the first seven months of this year. With the support of the traditional rental season, it is expected that the upward trend in rent will continue in August, setting new records. Regarding property prices, Andy Chan indicated that although the Rating and Valuation Department reported a month-on-month decline of approximately 0.46% in the private residential sales price index for July, the current upward trend in property prices is not expected to end. In fact, the short-term consolidation after 13 consecutive months of increases is a normal adjustment within an upward market. Importantly, the current economic fundamentals are robust, evidenced by strong GDP growth in Hong Kong in the first half of the year, an IPO fundraising amount that has surpassed last year, and an increase in incoming travelers, all of which provide substantial support for the property market. As recent trading activities in the new property market have rebounded, this reflects strong market absorption capacity. Meanwhile, with rents continually hitting new highs and rising rental costs further driving the desire for a "rent-to-buy" trend, the relatively good rental performance over the past two months is supporting rental yields and increasing long-term investment demand. It is anticipated that property prices will robustly resume their upward trend, potentially increasing by about 5% in the second half of the year.