Hong Kong home prices to rise 5% in 2027: report

HONG Kong home prices are set to climb another 5 per cent in 2027 as surging rents and a rallying renminbi fuel purchases by mainland Chinese buyers, according to Bloomberg Intelligence (BI).

The expected increase builds on a 7 per cent gain in existing home values in the first nine months of 2026, while the rental index gained around 6 per cent, figures from Hong Kong’s Rating and Valuation Department show. 

Home sales have rebounded in the Asian financial hub this year, thanks largely to mainland buyers after the city scrapped stamp duties in February 2024. That demand is expected to hold up in 2027, underpinned by gains in the renminbi and real end-user appetite, even as Beijing steps up efforts to curtail capital outflows, according to the BI report. 

“Buyer demand is showing signs of a nascent recovery after July’s dip amid concerns about mainland capital-outflow curbs and potential interest-rate hikes,” BI analysts Patrick Wong and Kingsley Chan wrote in a note. 

The stronger renminbi has bolstered purchasing power for mainland Chinese abroad. China’s currency hit a three-year high of 1.18 against the Hong Kong dollar in November and may touch 1.2 in 2027, according to BI.

Rents in Hong Kong climbed nearly 4 per cent in the first half of the year from the previous six months, according to Centaline Property Agency. A steady influx of mainland professionals and students, alongside rebounding expatriate demand, is set to drive the steepest rental growth since the summer of 2016, it estimated in July.

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The improved sentiment has prompted major developers including Sun Hung Kai Properties and Henderson Land Development to become more active in selling new apartments, according to BI. New-home sales surged 21 per cent in October from a month earlier. 

Sun Hung Kai sold more than 3,500 units in its Sierra Sea project in the New Territories in the past 18 months, generating over HK$22 billion (US$2.8 billion), BI said. BLOOMBERG