Centraline Real Estate: CVI Drops to 77.62 Points, Falling Below 80 for the First Time Since February

Stock News07-16

The latest CVI reading is 77.62 points, a drop of 4.20 points from last week's 81.82 points. This marks the first time the index has fallen below the 80-point level since early February of this year. The escalation of the US-Iran conflict has contributed to the softening of the CVI. However, the index has now remained above the 60-point optimistic threshold for 41 consecutive weeks.

As the World Cup enters its final stages and the stock market recovers, several major new property developments are poised to launch, invigorating the real estate market atmosphere. Furthermore, multiple local Hong Kong banks have increased their cash rebates again, indicating that banks maintain confidence in the property market and hold a positive, optimistic stance on mortgages. It is anticipated that the CVI will continue to stay above the 60-point optimistic zone in the third quarter, suggesting that the upward trend in property prices remains unchanged, although the pace of increase is expected to slow.

The latest CCL stands at 159.54 points. This represents an 18.04% increase from the low of 135.16 points recorded in the week of May 2025 when the HIBOR-linked mortgage rate once again fell below the cap rate. Since the stamp duty relaxation in the budget, it has risen by 18.27%. Compared to the low of 135.86 points before the interest rate cut cycle, it has increased by 17.43%. So far in 2026, the cumulative gain is 10.71%.

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