Hong Kong's Rating and Valuation Department reported that the private housing rental index rose by approximately 0.78% month-on-month in July, marking a ninth consecutive monthly increase and continuing to set new historical highs. According to property analyst Shum Chung-him at Midland Realty, the onset of the traditional peak rental season, coupled with increased family relocation demand during the summer holidays, has further bolstered the rental market's performance. Additionally, the government's active promotion of Hong Kong as an international education hub has driven a steady rise in student arrivals, while the continued influx of skilled professionals has injected fresh demand into the private residential rental market, providing support for rental prices.

It is noteworthy that the Rating and Valuation Department also released data showing the private residential price index declined by around 0.46% month-on-month in July. Rental price performance has outpaced sales price trends for two consecutive months, which bodes positively for rental yields. Shum pointed out that the department's rental index continues its upward trajectory, aligning closely with Midland Realty's own "Rental Trend Chart." The latest July data from the chart indicates that the average private housing rent per square foot, calculated on a usable area basis, stands at approximately HKD 40.55, representing a monthly increase of about 1.35% and a seventh straight month of gains. Since setting a record high in January, rents have consistently hit new peaks for seven months in a row, accumulating a total increase of around 4.7% in the first seven months of this year. Supported by the traditional rental peak season, the upward momentum is expected to persist in August, with further record-breaking levels anticipated.

Turning to property prices, Shum explained that while the Rating and Valuation Department reported a 0.46% month-on-month decline in the private housing price index for July, the current price rally is likely not yet concluded. In fact, after 13 consecutive months of price increases, a brief consolidation phase represents a normal correction within an upward market. Crucially, the economic fundamentals remain robust, as evidenced by Hong Kong's strong GDP growth in the first half of the year, IPO fundraising volumes that have already surpassed last year's figures, and rising visitor arrivals, all of which provide tangible support to the property market. The recent pickup in new home sales indicates solid market absorption capacity. Meanwhile, continuously record-breaking rents are raising the cost of leasing, which in turn strengthens the incentive for renters to transition into homeownership. Coupled with stronger rental performance over the past two months, this supports rental yields and enhances long-term investment demand, setting the stage for renewed price growth. Property prices are expected to climb approximately 5% in the second half of the year.