Hong Kong's property market has officially entered a "positive cycle" of recovery, characterized by simultaneous growth in both prices and transaction volume. This is supported by five key factors: robust underlying demand, easing supply pressures, record-high rents, an influx of talent, and a recovery in profitability ratios. It is anticipated that residential property prices will see a full-year increase of 10% to 15%, while the number of residential property transactions is expected to reach approximately 72,000, marking a year-on-year increase of about 6% and reaching a five-year high.

The upward momentum in Hong Kong property prices has continued this year. The latest property price index stands at 145.77 points, reflecting a cumulative increase of 8.21% year-to-date and reaching a new high in over two and a half years. Compared to last year's low point, prices have rebounded by a cumulative 15.43%. With expectations of a stabilization in Sino-US economic and trade relations and a gradual easing of geopolitical tensions, among other positive factors, market confidence in the future outlook is expected to strengthen further.

A recent survey found that among 359 respondents, approximately 50.7% are optimistic about property price increases over the next 12 months. This figure represents an increase of 6.8 percentage points from the previous quarter and is the highest level recorded since the second quarter of 2016. About 34% of respondents expect property prices to remain stable, while only about 15.3% anticipate a decline. This indicates a generally positive public sentiment towards the market, with confidence in Hong Kong's property sector reaching its highest level in over a decade.

The active trading and sustained price increases in the Hong Kong property market are driving public demand for home purchases. Survey data reveals that approximately 57.1% of respondents intend to purchase property within the next 12 months. This represents an increase of about 8.6 percentage points from the previous quarter, reaching a six-quarter high and injecting further momentum into the market for the second half of the year.