HONG KONG - Hong Kong's home prices largely stayed flat in May, government figures showed on Thursday, supported by falling mortgage rates.

Private home prices edged up only 0.03 percent in May from the month before, following a revised 0.5 percent rise in April that ended four months of decline, data from the Rating and Valuation Department showed.

The prices have dropped 0.9 percent so far this year to their lowest level since 2016.

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Home prices in Hong Kong have tumbled nearly 30 percent 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, hit a fresh three-year low last week, making mortgage rates more affordable for home buyers.

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Realtors forecast home prices in 2025 could rise or fall by 5 percent.

Martin Wong, director of real estate consultancy Knight Frank, expected the property market to bottom out in the second half due to more rate cuts.

Morgan Stanley last week said the Hong Kong residential market could be at the onset of an up-cycle that could last for four to five years, because of improved home affordability, more home buyers from the Chinese mainland, coupled with less land supply, and low mortgage rates.