Structural recovery of Hong Kong property market: luxury homes leading the rise, second-hand sales increasing, and new properties selling well

1、 Leading the luxury housing market with strong performance: frequent transactions worth billions of yuan, highlighting the effect of a safe haven for funds

At the beginning of 2026, the luxury housing market in Hong Kong was the first to explode, becoming the core engine of this round of real estate recovery. Multiple large transactions exceeding HKD 100 million have been recorded in the first quarter, with a 7-fold year-on-year increase in the number of luxury home transactions worth HKD 100 million in a single month, and a total transaction amount exceeding HKD 5 billion. Traditional luxury residential areas such as the Southern District, Mid Levels West, and Repulse Bay on Hong Kong Island have become capital gathering places, with buyers splurging HKD 129 million to purchase 10 luxury homes at once, reproducing the scene of "big spenders" shopping.

This round of luxury housing sales is driven by Hong Kong's asset safe haven status as an international financial center. Against the backdrop of global geopolitical and exchange rate fluctuations, high net worth individuals tend to allocate high-quality real estate for value preservation and appreciation. Combined with the continuous release of the "cooling off" policy effect in the Hong Kong real estate market, the expectation of a US dollar interest rate cut to reduce financing costs, and the continuous influx of mainland funds, the luxury housing market has seen a simultaneous increase in both volume and price. Even if the February budget raises the stamp duty on luxury homes worth billions of yuan from 4.25% to 6.5%, it has not stopped the heat of large-scale transactions, highlighting the scarcity and resilience of high-end properties.

2、 The second-hand housing market has fully recovered: 4621 transactions were made in March, reaching a new high in 4 and a half years

Under the transmission of the luxury housing market, the second-hand housing market in Hong Kong has also rebounded, with a concentrated release of both essential and improved demand. In March 2026, there were 4621 transactions of second-hand private residential properties in Hong Kong, an increase of 18.1% compared to the previous month, setting a new monthly high in over 4 and a half years since July 2021; The transaction amount reached HKD 35.84 billion, a month on month increase of 20.7%. The cumulative transaction volume of second-hand houses in the first quarter was 12449, an increase of 13.6% compared to the previous quarter, which was the best performance in nearly 18 quarters.

From a regional perspective, the demand driven sectors such as Kowloon and New Territories East have the most active transactions, while high-quality properties in areas such as Hung Hom, Tseung Kwan O, and Tai Wai have quickly sold after being listed, leading to an increase in reluctance and price hikes among homeowners. The rebound of the second-hand housing market is not only due to the transmission of market confidence driven by the hot sales of new properties, but also benefited from the decline in interest rates, the reduction of purchasing costs, and the concentrated release of pent up demand. The formation of a benign linkage between the primary and secondary markets marks the shift of Hong Kong's real estate market from a "local hotspot" to a comprehensive recovery.

3、 New stock sales are accelerating: selling out at the opening is becoming normalized, and oversubscription has repeatedly broken records

The new housing market is even more hot, with multiple projects experiencing explosive scenes of "opening and closing", and the subscription excess multiple repeatedly reaching new highs. The 64 units of the Tsim Sha Tsui Yuet Yue project received 1400 subscribed tickets, oversubscribed by 20 times, and sold out on the opening day; The first round of 123 units at Hung Hom's first meeting were quickly sold out within 4 hours; The Yuyi project received 5100 tickets for 160 units, becoming the "ticket king" with over purchases of 30 times. New properties in the New Territories, Kowloon, and other essential areas are also in short supply, with some projects oversubscribed by more than 10 times.

Behind the hot sales of new stocks is the dual effect of supply-demand imbalance and demand explosion. On the one hand, in recent years, the supply of residential properties in Hong Kong has been tight, and high-quality new properties are scarce; On the other hand, the recovery of market confidence, the introduction of new population through talent policies, and the continuous influx of mainland buyers have collectively driven up the demand for home purchases. Developers are accelerating the pace of property promotion, with popular projects frequently appearing as "sunshine", further strengthening market heat and forming a positive cycle of "hot selling, price increase, and hot selling again".