Private home prices edged up 0.03% in June from the month before, following a revised 0.03% rise in May, data from the Rating and Valuation Department showed

Hong Kong’s home prices were largely unchanged for a second consecutive month in June on lower mortgage rates, government data showed on Tuesday, signalling stabilization after recent steep declines.

Private home prices edged up 0.03% in June from the month before, following a revised 0.03% rise in May, data from the Rating and Valuation Department showed. In April, home prices climbed a revised 0.5%, ending four months of decline.

Prices have dropped 0.9% this year to their lowest since 2016.

Home prices in Hong Kong, one of the world’s most unaffordable cities, have tumbled nearly 30% from a 2021 peak, hurt by higher mortgage rates, a weak economic outlook, and poor demand as many professionals have left the territory.

Authorities tried to prop up the sector last year, lifting all curbs on property purchases and relaxing down payment ratios, but housing demand has remained soft.

The one-month Hong Kong dollar interbank rate HIBOR , which many mortgage plans are linked to, dropped below 1.2% since May from more than 3.5% in the past two years, making mortgage rates more affordable for home buyers.

Realtors forecast home prices in 2025 could rise or fall by 5%, depending on the pace of official rate cuts and the severity of trade tensions between China and the United States.

Brokerages including Morgan Stanley and HSBC recently said they expected the Hong Kong residential market to bottom out.

But realtor JLL, which sees a 5% drop in mass residential prices this year, said it does not expect a sustainable recovery until 2026, when inventory could drop to a healthy level.