HK house prices hit 8-year low after 2-month decline

Hong Kong home prices have fallen for two consecutive months, dropping below levels seen before the easing of "spicy measures" and reaching a multi-year low, while rents have risen for four straight months.

The private residential price index fell to 301.8 in June, marking an eight-year low. This represents a month-on-month decrease of 1.2%, a slight narrowing of the 1.3% decline in May. The index fell by 13.1% year-on-year, with a total decline of approximately 3.1% in the first half of the year, according to the Rating and Valuation Department.

Prices for small to medium-sized units fell nearly 1.3% month-on-month in June, down about 13.2% year-on-year, with a 3.1% drop in the year's first half. Prices for large units decreased by 0.5% month-on-month, down 8.8% year-on-year, and fell about 1.1% in the first half of the year.

The rental index for last month was 189, the highest in four and a half years, with a month-on-month increase of nearly 0.2%, slowing from May's 1.1% rise. Year-on-year, the rental index rose by almost 4.5%, with a cumulative growth of 1.6% in the year's first half.