Hong Kong property market in April 2025: Rents rise against the trend and trading sentiment picks up

In April 2025, the Hong Kong property market showed a trend of continued slight decline in sales prices but rising rents against the market trend. Data from the Rating and Valuation Department showed that the private residential sales price index rose slightly by 0.35% month-on-month in April, ending four consecutive months of decline, but still fell by about 7% year-on-year. The rental index has risen for five consecutive months, rising by 0.31% month-on-month in April and more than 3% year-on-year, reflecting the increase in rental returns, attracting more investors to enter the market. Due to the ample funds in the local banking system, the interbank offered rate (HIBOR) has dropped from 3.99% at the beginning of the year to 1.3%, leading to a decline in mortgage interest rates, alleviating the pressure on owners to pay mortgages, and prompting an increase in transactions. The number of registered sales and purchase contracts in April increased from about 5,000 at the beginning of the year to nearly 5,800 in May, an increase of about 16%, indicating that market demand has picked up, especially the significant increase in transactions of small units.