Hong Kong home prices fall 0.5% in July, ending 13-month growth streak

Hong Kong private home prices fell roughly 0.46-0.5% in July 2026, marking the end of a 13-month streak of continuous rises that began in mid-2025, real estate agencies reported ^{[1, 2, 3, 4, 5, 6]}. The private home price index dropped to about 321.5 points in July from 323 points in June. This level remains around 19% below the September 2021 peak of 398.1 points ^{[2, 3]}.

Despite the July dip, prices for private homes have increased approximately 7.3% since the end of 2025 through July 2026. This reflects a recovery following a bottoming out in March 2025, when prices had fallen nearly 30% from the 2021 peak ^{[1, 2, 4, 5, 6]}.

Residential home sales volume and value in Hong Kong plunged more than 40% month-on-month in July 2026, showing a sharp slowdown in market activity ^{[1, 2, 5, 6]}. Mainland Chinese buyers accounted for about half of first-hand home sales value in Q1 2026, supporting strong sales in the first half of the year ^{[1, 2, 5, 6]}. However, measures implemented by mainland authorities earlier this year to curb capital outflows—such as new taxes on offshore stock trading, insurance policies, and trusts—have dampened demand in Hong Kong’s property sector ^{[1, 2, 5, 6]}.

Real estate firms foresee further declines in property sales for August 2026, potentially reaching the lowest level in 18 months. Centaline Property said, "The city’s overall property sales are expected to fall further in August to the lowest in 18 months as buyers turn conservative, citing impact from cross-border capital clampdown and the Middle East situation" ^[1].

While home prices softened, the private residential rent index rose 0.78% month-on-month in July, marking nine consecutive months of rental increases. The rent index reached 207.4 points in July 2026 ^[2].

The market last saw sustained growth starting June 2025 after a prolonged slump. The July price decline and sales slowdown suggest caution among buyers amid ongoing cross-border capital controls and geopolitical tensions. August sales figures will clarify if the downtrend continues ^{[1, 2, 5, 6]}.