Centaline Property: CSI (Residential Price) Index falls for two consecutive weeks to 55.69 points, upward momentum in home prices blocked

Yang Mingyi, Senior Associate Director of the Research Department at Centaline Property, noted that the CSI (Residential Price) Index latest reading is 55.69 points, down 0.82 points from 56.51 points last week, falling for two consecutive weeks by a total of 1.66 points. Multiple new projects have been launched successively with enthusiastic responses, and the primary market atmosphere is active, but developers tend to price their units close to secondary market levels, putting pressure on the secondary market, with both buyers and sellers turning to a wait-and-see approach. The Federal Reserve is about to announce its interest rate decision. Although the market expects little chance of a rate hike this time, the Fed's future stance still warrants attention. Coupled with the weak performance of Hong Kong stocks, multiple uncertain factors are weighing on the index. The CSI has held steady above the 55-point bullish zone for 61 consecutive weeks, but continues to weaken, with upward momentum in home prices blocked. Whether the index can hold the 55-point level is crucial. The CSI (Residential Rental) stands at 58.90 points, down 0.44 points week-on-week, falling for two consecutive weeks and losing the upper limit of the 60-point bullish-bearish demarcation range. The rental market is still supported by rigid demand, and residential rents are expected to see slower growth but remain at high levels. For shops, the CSI (Shop Price) stands at 41.04 points, down 3.13 points week-on-week; the CSI (Shop Rental) stands at 44.78 points, down 1.83 points week-on-week. Both shop price and rental indices fell, continuing to fluctuate around the lower limit of the 40-point bullish-bearish demarcation range, indicating that the shop sales and leasing markets have yet to see a breakthrough and lack upward momentum. For industrial buildings, the CSI (Industrial Building Price) stands at 44.00 points, down 1.38 points week-on-week; the CSI (Industrial Building Rental) stands at 43.42 points, down 2.79 points week-on-week. The price and rental indices have long stabilized above 40 points but still failed to break through the 50-point bullish-bearish demarcation, indicating that the industrial building sales and leasing markets are stable and continue to be in a sideways phase. For offices, the CSI (Office Price) stands at 36.56 points, down 0.77 points week-on-week; the CSI (Office Rental) stands at 36.56 points, down 0.77 points week-on-week. The price and rental indices edged lower, still moving sideways in bearish territory, and the office sales and leasing markets are expected to remain soft.