The residential property market in Hong Kong has fully recovered, with trading volume reaching a new high in four years

According to data from the Rating and Valuation Department of the Hong Kong Special Administrative Region Government and multiple institutions, driven by multiple favorable factors such as the improvement of the financial market, the decline in interest rates, and the influx of talent, the residential market in Hong Kong has completely shaken off the adjustment trend of three consecutive years. Both the primary and secondary markets have shown a strong recovery momentum, becoming an important support for the economic recovery of Hong Kong.

1、 Market performance: Trading volume hits a 4-year high, with both volume and price rising to become mainstream

The most distinctive feature of the current residential property market in Hong Kong is the explosive growth in transaction volume, reaching the highest level in nearly four years. According to data from the Meilian Property Research Center, as of the first quarter of this year, the overall residential registration volume in Hong Kong has exceeded 20000, marking the first time in nearly five years that this achievement has been achieved in the first quarter. This is a significant increase of about 25.8% compared to the same period last year, and the overall property registration volume has exceeded 70000 for the first time since 2021, indicating a significant increase in trading activity.

From a market perspective, there is a positive linkage between the first-hand and second-hand residential markets, jointly driving up the trading volume. In terms of the primary market, a total of 5373 buying and selling registrations were recorded in the first quarter of 2026, involving a total amount of HKD 62.8 billion. These two figures surged by 38% and 94% respectively compared to the same period last year, setting a new high for the same period in previous years; The second-hand market also performed well, with 4621 second-hand residential transactions and a total amount of HKD 35.84 billion in March, up 18.1% and 20.7% respectively month on month, setting a new high in the number of transactions in 56 months. In terms of prices, property prices have rebounded by 12.05% since their low in 2025, and the Meilian Property Price Index has reached a new high in over two years. Property prices in Hong Kong Island, Kowloon, and the New Territories have risen across the board on a weekly basis, and the trend of both volume and price increases has further solidified the foundation for market recovery.

2、 Core driving force: Multiple positive resonances activate potential market demand

The comprehensive recovery of the residential property market in Hong Kong is not accidental, but the result of the synergistic effect of multiple factors such as policies, finance, and talent. At the policy level, in 2024, the Hong Kong Special Administrative Region government will revoke all measures to manage the demand for residential properties, releasing the purchasing power that had been suppressed for many years. In addition, the subsequent optimization of stamp duty policies will further lower the threshold for home purchases and promote the sustained release of market demand. Even if the 2026 budget announces an increase of over 100 million yuan in residential property stamp duty, the market performance remains strong, which is sufficient to confirm the stability of the recovery momentum.

On the financial front, Hong Kong has entered a cycle of interest rate cuts since the end of 2024, with bank interest rates declining and fixed deposit yields decreasing, significantly enhancing the attractiveness of real estate asset allocation. At the same time, the Hang Seng Index will rise by 27.8% for the whole year of 2025, and the IPO market will regain the world's top spot. The wealth effect will be accelerated, and high net worth individuals will consider residential properties in core areas as an important choice for hedging and appreciation. In addition, the talent introduction program in Hong Kong has achieved remarkable results, with over 410000 applications approved in the past three years, of which about 300000 are from the mainland. These newly arrived talents not only support the rental market, but also become a potential force in the real estate market, injecting lasting momentum into the market.

3、 Market characteristics: Mainland buyers and "big spenders" become the core increment

The recovery of the Hong Kong residential market this time presents distinct market characteristics, with mainland buyers and "big spenders" becoming the core forces driving market warming. In terms of mainland buyers, after the "cooling off" of the real estate market, they enjoy the same tax rate as Hong Kong permanent residents, and the policy dividend continues to ferment. In 2025, the number of Mandarin Pinyin buyers entering the market exceeded 10000 for two consecutive years, and this trend will continue in 2026. Unlike in the past, this round of mainland buyers is becoming more rational, focusing on small and medium-sized apartments in core areas with good liquidity and stable rent, while high net worth customers are focusing on traditional luxury residential areas, transforming from "assault teams" to "permanent market forces".