Valuer Insights

Hong Kong Residential Insights January 2025

By Valuation & Advisory Services

February 17, 2025

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In this report, we look into Hong Kong residential property market for January 2025.

Snapshot

Banks further lowered prime rate as US Fed reduced policy rate in December
Following US Federal Reserve rate cut on 18 December 2024, major banks in Hong Kong reduced prime rate by 12.5 basis points. Effective mortgage rate dropped to 3.5%. Also, banks resume cash rebates to capture market share.
Residential price stabilizing since US rate cut
Average residential price fluctuated less than 1% in Q4 2024, according to data from RVD. Since US Fed cut interest rate in September, where major local banks lowered prime rate, Hong Kong residential price has been stabilizing over the last few months after declined for five consecutive months previously.
Transaction volume softened partly due to festive holiday
Due to Chinese New Year holiday, transaction volume further softened by 11.6% m-o-m to 3,626 units in January 2025 after retreated by 34.9% m-o-m in preceding month, according to data from Land Registry.
Unsold units of completed projects surged by 5,900 units in Q4 2024 with 13,300 units completed
According to Housing Bureau, the projected private flat supply for the next three to four years (as of 31 December 2024) was 107,000 units, down by 1,000 units q-o-q. The total number of private residential units completed increased by 74.8% y-o-y, recording a total of 24,300 units in FY2024. Unsold units of completed projects was 26,600 units, increased 5,900 units q-o-q.