Hong Kong's lived-in home prices fell for the fourth month in a row, and remained at their lowest level in almost nine years, as global trade uncertainties curbed investment appetite.

Data from the Rating and Valuation Department on Monday showed the city's official home price index dropped to 284.2 in March.

That was 0.49 percent lower compared with a month earlier, 7.8 percent lower year-on-year, and a fall of 29 percent from the market peak in September 2021.

The latest data also saw the index at its lowest since July 2016, when the gauge stood at 281.7.

Taking the first quarter in total, the index fell by 1.7 percent.

Rents, however, continued to go up, with the key gauge rising by 0.1 percent last month to 193.3.

Commenting on the latest figures, Eddie Kwok, executive director at CBRE Hong Kong's Valuation & Advisory Services, said the "narrowed" residential property price declines were "negatively affected" by global uncertainties, as potential buyers took a wait and see approach which weighed on prices.

But he noted the situation had been improving towards the end of this month, with more transactions emerging.

"[But] overall, sentiment could lead to a slight decrease in residential prices in the next few months and this is likely to persist in the near term until situation becomes clearer," he said.

Separately, Martin Wong, Knight Frank's senior director, and head of research and consultancy for greater China, noted that the tariffs' impacts were limited and that the price retreats were due to the city's record high supply, with over 25,000 units unsold.

He added that the city's property markets could get a boost if the US Federal Reserve starts to reduce interest rates in the second quarter to spur growth.

"We still expect that the Fed could reduce interest rates by a total of 0.5 percentage points over 2025," he told RTHK.

"And if the Fed cut interest rates, Hong Kong's major banks would follow suit and there would be adjustments for the prime rates.

"And if the local overall mortgage rate is below three percent following the rate cuts, there would be a rebound in the market," he said.
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Last updated: 2025-04-28 HKT 18:43