Hong Kong's property market faced significant headwinds in Q1 2025, characterized by declining capital values across all sectors, elevated distressed transactions, and persistent oversupply. Key drivers included high interest rates (HIBOR >4%), US-China trade tensions, and cautious investor sentiment. Residential transactions rebounded (+24% YoY) due to policy stimuli, but commercial investment volume plummeted (-46.8% QoQ). Rental markets showed relative resilience, particularly in residential and niche retail segments.
