Hong Kong developers sell US$750 million of luxury homes in weeks
The string of new luxury home sales contrasts with the gloom hanging over the market in the first half of 2025
[HONG KONG] Developers in Hong Kong were kept busy during the holiday season as rich buyers went on a shopping spree for luxury homes.
The city’s high-end residential market had one of its busiest periods in years over the past two weeks, with transactions totalling more than US$750 million at nine projects alone, according to Bloomberg calculations based on filings. That bodes well for the luxury sector this year, following a prolonged slump that was exacerbated by distressed owners dumping properties cheaply.
Among the deals, Swire Properties scored the highest price tag, offloading two mansions at Deep Water Bay for a total of HK$2.2 billion (S$362 million) in one of the largest transactions in recent years. HKR International sold a pair of houses next to its golf club at Discovery Bay for almost HK$1 billion.
A property at 1 Plantation Road in the city’s famed Peak neighbourhood fetched HK$558 million. House 1 spans more than 6,000 square feet (557 square metres) and has four suites, a private elevator and a garage.
“Wealthy buyers are making decisions faster,” said William Lau, senior director and head of residential agency at Knight Frank in Hong Kong. “The strong luxury sales are propelled by the hot-money effect from the stock market and lower interest rates.”
An equity market rebound last year saw the benchmark Hang Seng Index jump more than 27 per cent and the Hong Kong stock exchange regain its status as the world’s top initial public offering venue after a long drought. That has made many investors in the Asian financial hub feel wealthier.
The string of new luxury home sales contrasts with the gloom hanging over the market in the first half of 2025, when struggling business tycoons sought to offload their dwellings to cut debt and banks offered foreclosed mansions at steep discounts.
In July, real estate services firm Jones Lang LaSalle forecast luxury home prices would drop as much as 10 per cent in 2025 and overall values by 5 per cent, hurt by high inventory levels and weak buyer confidence.
In fact, the city’s residential price index edged up about 2.8 per cent in the first 11 months of 2025, according to data from the Rating and Valuation Department, marking a reversal from the downward trend in the previous three years.
Knight Frank expects mass residential prices in Hong Kong to jump 5 to 8 per cent in 2026 and luxury values to rise 3 to 5 per cent, supported by demand from immigrants and finance industry professionals, according to a December report by the real estate consultancy. Another property agency, Cushman & Wakefield, sees home prices growing as much as 5 per cent this year.
“New luxury home offerings at good locations are always rare, so prices are holding up,” Lau said, while adding that it may remain difficult to find buyers for old second-hand mansions. BLOOMBERG
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