Hong Kong's home prices dropped for the fifth consecutive month in September, official data showed on Tuesday, in a struggling property market that realtors expect to bottom out soon after an interest rate cut and the government's easing policies.

Housing demand in Hong Kong, one of the world's most unaffordable cities, has lost steam since May after a short-lived bounce when all property purchase curbs were lifted in February. Realtors said much of the pent-up demand has been sated, while property developers launched new flats at steep discounts to boost sales.

The government this month also relaxed the down payment ratio to 30% for all properties, and allowed purchases of luxury homes worth more than HK$50 million ($6.43 million) to be included in its investment immigration scheme.

Private home prices fell 1.7% in September from the month before.

Prices have dropped 7.5% since December.

They have tumbled 27.7% from their 2021 peak, staying at their lowest level since August 2016, hurt by higher mortgage rates, an outflow of professionals and a weak market outlook.