HONG KONG: Hong Kong's housing market continued to lose ground in March, with home prices falling for a fourth straight month despite government efforts to revive demand.

Government data released this week showed private home prices slipped 0.5 percent in March compared to February, following a revised 0.6 percent drop the previous month, according to the Rating and Valuation Department.

Prices in one of the world's most expensive property markets have tumbled nearly 30 percent from their 2021 peak. Higher mortgage rates, a sluggish economic outlook, and weakened demand—partly driven by an exodus of professionals—have weighed heavily on the sector.

Authorities lifted property curbs and relaxed down payment requirements last year to stimulate the market, but demand has yet to rebound meaningfully.

Looking ahead, realtors predict home prices could either rise or fall by up to five percent in 2025, depending largely on the pace of interest rate cuts and the outcome of ongoing trade tensions between China and the United States.

Eddie Kwok, executive director at real estate consultancy CBRE, noted that global uncertainty dampened investment appetite in April, warning it could result in further slight decreases in the coming months as buyers adopt a cautious stance.

Meanwhile, Martin Wong, director at Knight Frank, pointed out that potential U.S. interest rate cuts could prompt Hong Kong to follow suit, offering some relief to the property market.

In an effort to bolster activity, the Hong Kong government slashed stamp duty charges in February for smaller transactions. Buyers purchasing homes valued between HK$3 million and HK$4 million (roughly US$385,847 to $514,462) now pay just HK$100 in stamp duty — a significant reduction from the previous maximum of HK$60,000. Property agents say the change could drive a five percent to ten percent increase in home transactions.

Major banks also lowered their best lending rates in December by 25 basis points, marking the third cut last year. Although Hong Kong's currency remains pegged to the U.S. dollar, local banks independently set their lending rates.