Property prices have risen four months in a row since this year, up 5.83% cumulatively; if compared with the historical high of 398.1 points in September 2021, the cumulative decline in property prices narrowed to 11.03%. A major bank analysis is expected that property prices can be upward depending on interest rates and Hong Kong stocks, and revised annual small and medium-sized private property prices rose 2% to 6%.
The latest figures from the Department of Differential Valuation show that the Hong Kong Property Price Index rose for four months in a row to a seven-month high, the latest April Hong Kong private residential property price index rose to 354.2, up 0.54% month-on-month, down 8% year-on-year. Small and medium-sized units (1,076 square feet or less) price index rose 0.51% month-on-month; larger units (1,076 square feet or more) price index rose 1.26% month-on-month. In the first four months of this year, the private property price index rose by 5.83%.
Among them, the price index of Class A properties (below 430 sq ft) increased by 0.99%; Class B properties (431 to 752 sq ft) increased by 0.26%; Class C properties (753 to 1,075 sq ft) increased by 0.09%; Class D properties (1,076 to 1,721 sq ft) increased by 1.42%; Class E properties (1,722 sq ft or above) increased by The rental index for private housing rose by 1.42% month-on-month.
As for the rent index, last month's private residential rent index was 178.2, compared to 175.7 in March, up 1.42% month-on-month and up 3 months in a row, with the index hitting a 7-month high. In summary, the rent index rose 1.54% in the first four months of this year, and by about 0.51% in the same period last year.
The rent index for all types of units reported an increase across the board, with the largest increase being for units of 753 to 1,075 square feet at 151.9, up 1.88% month-over-month. Units of 431 sq. ft. or less were reported at 197.9, up 1.64% month-over-month. Units of 432 to 752 sq ft were at 175.9, up 1.44% month-on-month; large luxury units of 1,722 sq ft or more were up 1.28% month-on-month to 134.3. Units of 1,076 to 1,721 sq ft were at 146.2, up 0.14% month-on-month.
Colliers Hong Kong research department director Lee Yuen-yan said, property prices continue to be driven by small and medium-sized units, the first quarter performance recovery, mainly by the resumption of customs clearance, developers actively pushing sales, adjusting the stamp duty scale and the United States to slow the pace of interest rate hikes four good factors to drive market optimism. Into the second quarter, depending on the amount of private residential market transactions and the number of cases, obviously slowed down than the first quarter of the fever, whether property prices can continue to rise, depending to a large extent on interest rates and changes in the Hong Kong stock market.
She also pointed out that, with the good news gradually reflected in the market and digestion, and then look at the recent trend of interbank interest rates have been rising, to May 10 from the breakthrough of 4%, the latest report 4.35%, although not directly affect mortgage loans, but the overall cost of loans caused by rising pressure, especially the need for bank loans for the operation of business operators, will be more prudent use of funds, which indirectly make the property market purchasing power tends to conservative.
On the other hand, has always been regarded as one of the property market indicators of the Hang Seng Index, recent performance fluctuations, from a high of 22,688 points at the beginning of the year, down to 18,660 points level, creating a negative factor, property prices often followed by a lag in reflection, worthy of close reference.
Finally, the optimism of the first quarter also drove second-hand owners to call prices aggressive, the pace of transactions failed to keep up with the developers of first-hand sales, so it is expected that second-hand prices will gradually adjust to market prices in the second half of the quarter. A combination of the above factors, the bank revised the annual small and medium-sized private residential property prices, the forecast year-on-year increase revised to 2% to 6%.
Ricacorp real estate research department director Chen Haichao said, due to the overall economic recovery in the resumption of customs clearance, coupled with the Government's determination to attract talent to Hong Kong, and significantly relaxed the "talent list", the relevant effects are expected to emerge at the end of the second quarter and the second half of the year. Accordingly, it is expected that the property price index in June has the opportunity to expand the rate of increase again, if the monthly increase of 0.8%, the overall property prices in the second quarter is expected to rise 1.55%, together with the first quarter of 5.26% total, the first half of the property prices are expected to record an increase of about 6.88%.
