UPDATE 1-UAE property market starting to bottom out -HSBC

* Prices rise 4 pct m-o-m in April and 5 pct in May

* Prices down 23 pct from September peak

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By Jason Benham

DUBAI, May 31 (Reuters) - The real estate market in the United Arab Emirates is beginning to bottom out as prices stabilise, but values could still fall further as more property comes onto the market, HSBC said in a report released on Sunday.

Agreed prices in the UAE rose 4 percent month-on-month in April and 5 percent in May, but were still 23 down from a peak hit in September 2008, the report said.

The once-booming real estate market in Dubai, one of the UAE's seven emirates, has been hit particularly hard by the global financial crisis, as prices tumble, developers cancel projects and jobs are slashed.

Any recovery in the country's property market would go some way to easing investors' concerns about the health of the second-largest economy in the Gulf Arab region.