Hong Kong real estate market: both quantity and price rise, mainland buyers join forces with "big spenders" to support the market

1、 Large scale customer shopping frenzy: 265 transactions per season, accounting for over 10% of the total transaction volume

The most significant feature of this round of real estate market outbreak is the strong return of "big spenders", setting a record for the same period in nearly 20 years. In the first quarter, Hong Kong recorded 265 cases of large customers entering the market, involving 695 units and a total amount of HKD 7.13 billion, accounting for over 10% of the overall new housing transaction volume. Compared to the same period in 2025, the number of cases has increased by 1.3 times, and compared to the 15 cases before the "withdrawal of spicy food" in 2023, it has increased by nearly 17 times. On average, each group of large customers has a threshold of HKD 26.91 million for entering the market, and buyers have even spent HKD 129 million to purchase 10 properties in one go. A new property in Hung Hom sold out 123 properties within 4 hours, with a single day cash out of over HKD 1 billion.

Large scale customers are flocking to high-quality projects in the core areas, with Kowloon, Hong Kong Island, and Kai Tak becoming the preferred choices. Super buyers who purchase more than 5 sets per customer are frequent. Chen Yongjie from Zhongyuan Real Estate stated that the combination of large customers' shopping and buyers' mentality of "buying late will be expensive" has rapidly heated up the market and opened up a strong "little spring" ahead of schedule. This phenomenon of "one customer eating multiple meals" not only demonstrates the long-term optimism of funds towards the Hong Kong real estate market, but also further drives up market heat, forming a positive cycle of "buying more as prices rise".

2、 Mainland buyers hold up half the sky: same tax rate dividend, high-end market accounts for 70%

After the policy was abolished, mainland buyers and Hong Kong permanent residents enjoy the same tax rate, becoming an important pillar of the real estate market. In the first quarter of 2026, the proportion of mainland buyers in overall transactions increased to 35%, a significant increase from just over 20% in the same period last year. Data shows that the registration volume of mainland buyers has exceeded 1000 for 12 consecutive months, and the amount has exceeded HKD 10 billion for 9 consecutive months, becoming a stable purchasing power in the market.

In the high-end market, mainland buyers have a stronger dominant force. Mainland customers account for nearly 70% of first-hand luxury homes worth over HKD 50 million, showing a trend of "higher prices, higher proportion". The advantage of the RMB exchange rate, the wealth effect of Hong Kong stocks, and the low interest rate environment during the interest rate cut cycle jointly strengthen the willingness of mainland buyers to allocate funds. High net worth individuals such as Shenzhen and Shanghai have become the main force, with some intermediaries providing chartered flights for viewing properties. High quality housing in core areas is in short supply, and the success rate has repeatedly hit new lows.

3、 Multiple positive resonances: Policy, finance, and demand jointly promote recovery

The current outbreak of the Hong Kong property market is not accidental, but the inevitable result of multiple positive factors. In 2024, the comprehensive "withdrawal of spicy food" will completely release the purchasing power that has been suppressed for more than ten years, and the demand for self occupation, improvement, and investment will concentrate and explode. In the past three years, the Hong Kong Talent Program has approved over 410000 people, with nearly 300000 mainland talents, creating a huge demand for leasing and real estate.

The financial environment continues to optimize, and Hong Kong has entered a cycle of interest rate cuts, with mortgage rates dropping to around 3.25% and monthly payment costs lower than rent. Combined with the recovery of Hong Kong stocks and the active IPO market, the wealth effect accelerates the flow of funds into the real estate market. Global safe haven funds have flooded in, and Hong Kong has become the preferred free port, further driving up asset prices. The supply of private buildings has been declining for two consecutive years, exacerbating the imbalance between supply and demand and driving up prices.

4、 Market trend: Steady upward trend, highlighting structural opportunities

Industry insiders predict that the Hong Kong real estate market is still on an upward trajectory, but will bid farewell to the surge and enter a steady upward phase. With the continuous entry of large customers and mainland buyers, the scarcity of high-quality properties in core areas will be further highlighted, and mid to high priced projects will become mainstream. The second-hand market has rebounded synchronously, with over 4000 transactions in March, reaching a new high in nearly 56 months, and the linkage between primary and secondary markets has supported market heat.