Knight Frank Senior Director and Head of Research & Consultancy for Greater China, Simon Wong, stated that the U.S. Federal Reserve's announcement of a 0.25% rate cut in September, with an expected additional 0.25% reduction within the year, will gradually reduce the impact of the high interest rate environment on Hong Kong's property market. However, due to accumulated price increases since 2022, the market needs time to release purchasing power. In the short term, the market still lacks sufficient buying power, though property prices are expected to bottom out in 2025.

He noted that new property launches will continue to outperform the secondary market in the coming months, with attractive pricing for new developments. Some developers are offering financial packages and rebates to buyers, effectively lowering entry barriers for purchasers. He forecasts that Hong Kong property prices will continue to fluctuate at the bottom for the remainder of 2025, with annual price declines of 0-3%, while next year may see a recovery of around 0.5%.

The property market recovery will be gradual, but current high inventory levels prevent conditions for significant price increases.