CX Briefing: Hong Kong Home Prices Rebound

A rundown of the news making headlines in and around China:

Hong Kong property: After four consecutive months of decline, Hong Kong home prices finally saw a slight rebound, with demand bolstered by mortgage rates falling below rental returns. On Wednesday, the Hong Kong Rating and Valuation Department announced the April private residential property price index, which rose 0.35% from March. In comparison, the corresponding rental index rose for the fifth straight month in April, up 0.31% month-on-month and 3.64% from the same period in 2024. Traditionally, rents peak during the second quarter, said Buggle Lau, chief analyst of property agency Midland Realty. Some Chinese mainland students will also go to the city to rent apartments ahead of the new school year starting in September, which is expected to further drive up rents, he said. However, home prices remain subdued, with the private residential property price index falling 7.72% year-on-year in April amid sluggish economic growth.