Hong Kong home prices fall in July 2026

Hong Kong’s private home price index fell 0.46% in July to 321.5, ending a 13-month rally, with declines concentrated among smaller 40–70 square metre units while luxury flats held up. The rental market continued to run hot, with the rental index rising about 0.78% to 207.4—marking a ninth straight monthly gain and a fresh all-time high as rents outpace price declines. New-home sales slumped, with July transactions dropping sharply (to around 731 first-hand deals, down 62% from June and the slowest in 16 months), signaling softer demand despite improving sentiment in some segments. Diverging indicators show a split market: some secondhand measures rose modestly while the official monthly index fell, suggesting timing and data scope drive differing readings. Analysts foresee a short-term consolidation rather than a renewed downturn, noting headwinds from stock-market volatility and tighter outbound investment rules from mainland China. Overall, rents remain a key strength amid affordability pressures and ongoing demand from mainland professionals, even as prices pause in the near term.