Hong Kong home prices extend longest streak of gains since 2018
The city has seen home sales rebound in recent months, thanks largely to mainland Chinese buyers
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[HONG KONG] Hong Kong home prices grew for a 12th month in May, extending the longest winning streak since 2018, a sign that the residential market recovery is taking hold.
The price index for private domestic homes rose 1.4 per cent in May from a month earlier, according to figures released by the Rating and Valuation Department on Friday (Jun 26). The gauge also climbed 12 per cent from a year earlier.
The Asian financial hub has seen home sales rebound in recent months, thanks largely to mainland Chinese buyers. Many of them are highly educated, affluent immigrants attracted by the city’s low taxes and expanded visa options to seek opportunities after the pandemic.
“The market was supported by the return of mainland buyers, improving sentiment and the gradual absorption of new supply,” said Cyrus Fong, head of valuation and advisory for Greater China at Knight Frank.
“Mortgage rates remain low, alongside abundant market liquidity,” said Fong, who expects mass residential prices to rise 8 to 10 per cent this year.
Hong Kong emerged from a prolonged housing slump in 2025, when prices rose for the first time in four years. Knight Frank anticipates as many as 80,000 home transactions this year, the most since 2012.
Still, the recovery may face pressure from China’s recent crackdown on illegitimate flows of money across the border. The moves, which have prompted banks to tighten scrutiny of mainland Chinese clients opening accounts, could weigh on the ability of homebuyers to pay deposits.
A recent slump in Hong Kong stocks is also likely to dampen sentiment, according to Eddie Kwok, an executive director at CBRE Hong Kong.
“These combined headwinds are expected to weigh on investment demand and market activity, potentially leading to a decline in transaction volumes in the coming months,” he said. BLOOMBERG
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