Hong Kong Real Estate: The three major real estate demand continues to enter the market, and Hong Kong property prices are expected to rise by about 10% in 2026

The Zhitong Finance App learned that Wang Pindi, director of the Hong Kong Real Estate Research Department, said that 2025 is a turning point for the Hong Kong property market. Driven by a number of favorable policies, market confidence has clearly recovered, property prices have stopped falling and rebounded, and the three major real estate demand support for self-occupation, rent collection, and investment marks a full return to market momentum. It is expected that the three major demands will continue to enter the market in 2026, driving property prices to rise by about 10% under optimistic conditions.

Wang Pindi pointed out that looking at 2025, the Hong Kong property market has come out of the adjustment period, buyers' confidence has recovered, and they are actively entering the market. In addition, investors have entered the market due to improved rent returns. At the same time, increased market liquidity has also attracted some short-term capital to find opportunities, and the three major real estate needs have become a new pattern of recovery in Hong Kong's property market. Property prices are expected to increase by about 5% this year, reversing the trend of continuous decline over the past three years.

The first-hand housing market is undoubtedly a powerful engine driving the property market this year. As of November this year, first-hand trading volume has stabilized at more than 1,000 transactions for 10 consecutive months. The first-hand transaction amount in the first 11 months was close to HK$190 billion, surpassing the total of last year and reaching a four-year high; first-hand sales volume has hit a new high since the implementation of the first-hand residential sales regulations in 2013, and is expected to challenge the 20,000 unit mark throughout the year.

The second-hand market is also following suit. The annual second-hand sales volume is expected to exceed 45,000, which will hit a four-year high. The property price index, which reflects market prices, has increased by more than 4.2% this year, and is expected to rise by about 5% for the whole year, successfully reversing the decline in the past 3 years, indicating that the second-hand market is showing a sharp rise in prices. Driven by expectations of interest rate cuts and rising rents, “rent-to-buy” demand and long-term investors are entering the market one after another, and the property market has entered a virtuous cycle.