Hong Kong's private residential property price index rose to 312.8 in March, reaching its highest level in over two years. This marks the tenth consecutive monthly increase, though the month-on-month growth rate moderated to approximately 1.4%. Year-on-year growth expanded to 9.8%, with a cumulative increase of 4.4% recorded in the first quarter of this year. Looking ahead, CBRE Group Inc predicts that Hong Kong's residential property market will remain in an upward cycle through 2026. With easing supply pressures and developers adopting firmer pricing strategies, barring any major reversal in the macroeconomic environment, property prices are expected to rise by approximately 8-10% for the full year. Overall, the market is gradually transitioning from a "destocking phase" to a "steady recovery phase," with market momentum slowly shifting back toward developers. According to the Executive Director of Valuation and Advisory Services at CBRE Hong Kong, market sentiment has improved noticeably this year compared to last, with increased investor confidence seen in both capital and property markets. The improved atmosphere in the IPO market, along with a gradual recovery in new listing activities, reflects growing confidence in economic prospects and corporate earnings. Increased capital inflows have also indirectly supported asset market performance. In the primary residential market, new project launches by developers have been well-received, with strong sales performance across many developments. Some projects have even sold out quickly or been oversubscribed, indicating renewed demand from both end-users and investors. In fact, since hitting a low last year, Hong Kong's property market has embarked on a sustained rebound that has continued into this year. Residential prices alone rose by approximately 4.4% in the first quarter, reflecting not only improved sentiment but also changes in supply dynamics. Over the past two years, developers adopted aggressive destocking strategies in response to high interest rates and funding pressures, using various incentives, discounts, and payment arrangements to clear accumulated unsold inventory. As these remaining units continue to be absorbed, the overall stock of unsold primary units has declined significantly. Market observations indicate that sales incentives are gradually being scaled back, with some major developers reducing discounts and even planning slight price increases in subsequent project phases or new launches to test market acceptance. This also signals developers' growing confidence in future market conditions. From a demand perspective, end-users remain the primary market support, while investment demand is showing signs of returning amid expectations of future interest rate cuts. Factors such as the gradual normalization of economic activity, population growth, and inflows of high-end talent are expected to provide medium- to long-term support for the residential market.