Hong Kong residential home prices have snapped a 13-month run of gains, according to data by the Rating and Valuation Department.

Its property price index measuring average home prices in all sizes dropped 0.46 percent to 321.5 in July

On a year-on-year basis, the index rose 11.6 percent.

For the first seven months of this year, the reading gained 7.3 percent.

By flat size, prices of small and medium sized flats fell 0.46 percent in July, while prices of luxury flats dropped 0.31 percent — their first monthly decline in a year.

"As residential property prices have increased by 7.3 percent year to date, further upside is expected to be limited in the short term. The residential market is likely to enter a consolidation phase in the coming months," Eddie Kwok, Executive Director, Valuation & Advisory Services, CBRE Hong Kong said.

Kwok said new home transaction volumes are expected to fall in the second half of this year, leading to a slight decline in overall 2026 new home sales.

Meanwhile, rent levels hit new highs.

The rental index by the the Rating and Valuation department recorded a gain of 0.77 percent to 207.4 in July — the ninth consecutive monthly gain.

The cumulative gain in the first seven months of this year reached 3.4 percent.


Edited by Tony Sabine