Hong Kong's property sector is displaying contrasting trends, with residential prices pulling back after a 13-month upward streak while rental costs continue their ascent to unprecedented levels.

According to the latest data from the Rating and Valuation Department, the city's private residential property price index eased to 321.5 in June, reflecting a 0.46% month-on-month decline. Despite the monthly dip, prices still show a robust 11.59% increase compared to the same period last year.

Breaking down the figures by property size, smaller units below 100 square meters saw their price index slip 0.46% on a monthly basis, while larger residences of 100 square meters or more experienced a more modest decrease of 0.31%.

Looking at specific categories, Class A properties under 40 square meters recorded a 0.35% monthly decline, and Class B units ranging from 40 to 69.9 square meters fell 0.57%. Class C properties between 70 and 99.9 square meters dropped 0.55%, while Class D residences spanning 100 to 159.9 square meters decreased 0.38%. Meanwhile, Class E properties of 160 square meters or above remained flat month-on-month.

On the rental front, the private residential rental index climbed to 207.4 in July, setting a new all-time high. This represents a 0.78% increase from the previous month and a substantial 5.07% year-on-year gain.

For the first seven months of the year, cumulative figures show the private residential price index has advanced 7.31%, while the rental index has gained 3.44% over the same period.