Hong Kong property price index has seen a sixth consecutive rise, with small units leading the market in terms of price increase!

Specifically, small units have performed particularly impressively, with a temporary increase of 3.9% for the whole year, significantly outperforming other units in terms of area and becoming the core highlight in this round of property market rebound. Last month, the private residential price index rose by 0.9% month-on-month, and has risen by 2.8% since the beginning of the year, with the decline narrowed to about 25% compared to the historical high of 398.1 points in September 2021. This series of data not only confirms the trend of the property market recovery but also reflects that the market supply and demand relationship is gradually improving, and buyers' confidence in entering the market has been boosted.

The outstanding performance of small units has become an important support for the current round of property price increases. Against the backdrop of an overall property price increase of 2.8%, small units have temporarily increased by 3.9% for the whole year, outperforming the market. This performance is not only related to the core demand for units that meet basic needs in the market, but also benefits from the lower entry threshold of small units, which makes them more attractive to first-time home buyers and small families. Industry insiders analyze that in the current market environment, small units have become the first choice for many home buyers due to their advantages of flexibility, practicality, and high cost-effectiveness. The release of demand has driven their price increase to the forefront.

Regarding the future market trend, some analytical institutions hold optimistic expectations. Analysts point out that the current upward trend in Hong Kong rents has not yet subsided, and the continuously rising rents will further force the transformation of rental demand into purchase demand, injecting more purchasing power into the residential market. Based on this judgment, institutions predict that the annual property price index is expected to record a 3.5% increase, and the momentum of the property market recovery is expected to continue.

The sixth consecutive rise in the property price index this time is an important signal that Hong Kong's property market is gradually shifting from an adjustment period to a recovery period. Although there is still a gap compared to historical highs, the continuous narrowing of the decline and the trend of small units leading the way reflect the gradual improvement of market fundamentals and lay a foundation for the stable operation of the property market in the future. For home buyers, the recovery of the property market coupled with the high cost-effectiveness of small units may usher in a relatively friendly window for entering the market; for the overall market, the continuous recovery trend is expected to further stimulate transaction activity and promote the gradual return of Hong Kong's property market to a stable operating track.