Hong Kong's lived-in home prices rose for the fourth consecutive month in July compared with the month before.

Figures from the Rating and Valuation Department on Wednesday showed the home price index, a key gauge measuring the city's private real estate prices, stood at 287.9 last month.

Prices rose 0.4 percent on a monthly basis, narrowing the annual decline for the period to 3.3 percent.

Taking the first seven months of this year in total, home prices fell 0.45 percent.

Commenting on the data, Eddie Kwok, executive director of valuation & advisory services at CBRE Hong Kong, said signs of a "bottoming out" in residential property prices are becoming more evident.

He noted that a residential plot in Tuen Mun sold by the government earlier this month went for more than expected, reflecting renewed optimism in the housing market.

Kwok said he also expects developers will scale back price cuts.

"Although the current inventories are hovering at a high level, developers were able to offload a decent volume of over 1,600 units each month since February and the consistent pick up in primary sales is easing inventory pressure," he said.

"Looking ahead, given the improvement in market sentiment coupled with expectations of US Federal Reserve rate cuts, we are optimistic that we are proceeding to a 'bottoming out'. This may also call an end to the residential market correction since 2021."

Meanwhile, the city's rental market remained strong, with a key rental index rising for the eighth month in a row to stand at 196.3 in July.

That was the highest level in almost six years, up 0.5 percent on a monthly basis and 1.3 percent higher than the same month last year.