Hong Kong residential market in the first quarter of 2026: transaction volume increases by 18% year-on-year

1、 Core data: Trading volume has increased by 18% year-on-year, and trading activity has significantly increased

According to the latest data released on March 30th, the transaction volume of Hong Kong's residential property market in the first quarter of 2026 achieved a year-on-year growth of 18%, and the trading activity significantly increased compared to the same period last year. According to statistics from the Meilian Property Research Center, the overall registration volume of residential properties in Hong Kong has exceeded 20000 in the first quarter, reaching 20015, a significant increase from 15906 in the same period of 2025. It is expected that the registration volume for the entire quarter will challenge 23000, setting a new high for the first quarter since 2013. Among them, the total number of registered first-hand private buildings and second-hand residential properties reached 17117, with a year-on-year increase of 32.5%. Popular projects such as Xisha SIERRASEA and Sunrise Kangcheng became the main buyers, driving the overall transaction volume to rise.

2、 Key turning point: Property price index rises by 1.2%, ending the downward trend in the second half of the year

In addition to a significant increase in transaction volume, another highlight of the Hong Kong residential market is the positive shift in property price trends. In the first quarter of 2026, the overall property price index slightly increased by 1.2%, successfully reversing the continuous downward trend since the second half of 2025 and achieving a rebound. This trend is in line with the monthly data. According to the Hong Kong Rating and Valuation Department, the price index of private homes in February was 307.6 points, a monthly increase of 1.6%, and has been rising for 9 consecutive months, reaching a new high in nearly 22 months. The cumulative increase in property prices in the first two months reached 2.6%. From the perspective of unit layout, the price increase of small and medium-sized units is more significant, with the price index of A, B, and C units rising by 7.8% year-on-year, and large units rising by 6.08% year-on-year, showing a comprehensive recovery trend.

3、 Reason for recovery: Multiple positive factors resonate to support market recovery

The good performance of the Hong Kong residential market in the first quarter is the result of multiple positive factors resonating. Firstly, we will continue to make efforts at the policy level, and by 2024, Hong Kong will comprehensively "withdraw" its policies, cancel all residential property demand management measures, reduce housing purchase costs, optimize mortgage loans and insurance policies, adjust down payment ratios, stress tests, etc. to 2009 levels, effectively activating market demand. Secondly, the liquidity environment is loose, and the Hong Kong Interbank Offered Rate (HIBOR) continues to decline. The average interest rate for newly approved housing loans has dropped to 3.25%, and the monthly mortgage burden rate for residents has fallen back to a reasonable range, enhancing their ability to purchase property.

Thirdly, the demand side continues to release, with mainland buyers becoming an important support. In 2025, the total amount of Hong Kong residential properties purchased by mainland buyers reached HKD 138 billion, a historic high. In the first month of 2026, the number of registered mainland buyers exceeded 1000 for 11 consecutive months; At the same time, the talent introduction policy in Hong Kong has achieved significant results, with the high-end talent pass program and the excellent talent entry program driving a significant increase in the average annual talent introduction volume, resulting in rigid housing demand. In addition, the wealth effect brought by the positive stock market has also driven some funds to shift towards the real estate market, further boosting market activity.