Gao Li: The market will continue to show a pattern of "strong rental and stable prices," with Hong Kong's property prices expected to record a moderate increase of 8-10% for the whole year.

The Hong Kong Rating and Valuation Department announced today that the private residential price index for July 2026 reported a figure of 321.5, representing a month-on-month decrease of 0.5%. This is the first recorded monthly drop since March of last year. In terms of the overall performance of private residential prices in the first seven months of this year, they have cumulatively increased by 7.3%. The private residential rental index recorded a figure of 207.4 in May, showing a month-on-month increase of 0.8%. Derek Chan, Director of Valuation and Consulting Services at Colliers Hong Kong, stated, "According to the latest data from the Hong Kong Rating and Valuation Department, the private residential rental index continues to rise and has hit a new high, reflecting a robust demand for residential leasing. In contrast, property prices are still in a consolidation phase, and the market's attitude towards future trends is relatively cautious. However, the continued rise in rents is gradually improving residential investment returns, providing some support to the property market. As rents increase, some tenants are beginning to reconsider 'renting to buying,' and investors' interest in residential assets has also heightened. We expect that property prices will continue to fluctuate within a narrow range in the coming months, but with factors such as a stable job market, lower capital costs, and an influx of talent and increased demand for student accommodation, residential rents are expected to maintain an upward trend. The market is likely to continue exhibiting a 'strong rental, stable price' pattern, with an anticipated moderate price increase of 8-10% for the year as a whole." Senior Director of Project Development Planning at Colliers, Johnny Leung, continued, "In light of the improving interest rate environment and growth potential, the atmosphere in the primary market has notably become more active over the past two weeks, with several new developments recording favorable sales figures. This reflects an increase in buyer confidence regarding future market trends. While the trajectory of property prices still depends on the overall economic environment and market supply, projects that are supported by transportation infrastructure and development concepts are expected to benefit more from the value uplift brought about by regional development. However, given that there is still a certain supply of new developments in the market, developers are expected to maintain a cautious yet competitive pricing strategy to align with market absorption capacity and sustain sales momentum. For projects with regional development concepts and transportation advantages, if sales responses are favorable, there may be some room for price increases when subsequent units are launched in the future."