HONG KONG — Hong Kong private home prices rose 3.3 per cent in 2025, marking the first rise since 2021, government data showed on Wednesday (Jan 28), as interest rate cuts and declining housing inventory bolstered market sentiment.

By the numbers

Home prices edged up 0.2 per cent in December from November, the seventh consecutive month of increase, Rating and Valuation Department data showed, following an upwardly revised 1.1 per cent increase in November.

Why it's important

Home prices in Hong Kong, one of the world's least affordable cities, have tumbled nearly 30 per cent from a 2021 peak. The decline was driven by higher mortgage rates, subdued economic prospects and reduced demand as strict Covid-19 policies and national security laws prompted an exodus of professionals.

The authorities tried to prop up the sector — a core pillar of the economy — since 2024, removing curbs on property purchases and relaxing ratios on down payments.

Here's some context

Property developers have resorted to selling new flats at discounted prices to boost sales, suppressing the second-hand market, which is reflected in the official price.