Residential Values Show Renewed Strength

Hong Kong’s residential market remained active in May 2026, although total transaction volume eased slightly to 7,138 units, down by 230 units from the previous month.

The secondary market accounted for 4,728 transactions, while primary sales reached 2,410 units. Despite the softer transaction volume, mass residential capital values increased by 2.0% month-on-month, indicating firmer market sentiment.

New developments also attracted strong demand. Lime Spark in Tsuen Wan sold all 154 units released during its first sales round, with average prices ranging from HKD 16,079 to HKD 18,408 per sq ft.

The luxury segment remained active, highlighted by the sale of an entire floor at Mount Nicholson for HKD 460 million, equivalent to HKD 100,745 per sq ft. 

Office Leasing Continues to Recover

Hong Kong’s office market recorded positive net absorption of 205,000 sq ft in May. Wanchai and Causeway Bay achieved their strongest monthly net take-up since April 2024, supported by demand spilling over from Central.

Leasing activity from securities firms remained robust. CITIC Securities leased 18,000 sq ft at CITIC Tower, while Ping An Securities secured 14,900 sq ft at The Center.

The overall office vacancy rate declined to 13.3%, while average office rents increased 0.3% month-on-month. Central led rental growth with a 0.7% increase, followed by Wanchai and Causeway Bay at 0.3%.

Outlook

Hong Kong’s property market is showing signs of gradual improvement across both residential and office segments.

Residential values may remain supported by successful project launches and firmer buyer sentiment. Meanwhile, improving office absorption and declining vacancy could strengthen leasing conditions, particularly in Central, Wanchai and Causeway Bay.

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Residential Market Shows Renewed Activity

Hong Kong’s residential market recorded a stronger performance in April, with total residential sales transactions rising to 7,368 units, up 1,052 units month-on-month. Secondary market transactions accounted for 4,774 units, while primary sales reached 2,594 units.

Mass residential capital values also improved, rising 1.5% month-on-month. In the primary market, One Victoria Cove in Hung Hom sold all 218 units launched in its first sales batch, with prices ranging from HKD 17,365 to HKD 21,158 per sq ft. Around 30% of buyers were estimated to have purchased for investment purposes.

Developer confidence also remained visible. The Kam Sheung Road Station Phase Two development was awarded to a consortium including Sino Land, China Overseas, Great Eagle and China Merchants, with planned investment exceeding HKD 13 billion. 

Office Market Sees Early Recovery Signs

Hong Kong’s office leasing market also showed improvement, recording positive net absorption of 8,000 sq ft in April. Central continued to lead demand, with average monthly net absorption exceeding 100,000 sq ft during the first four months of 2026.

The overall office vacancy rate remained stable at 13.5%, while Central vacancy declined to 9.2%. Office rents rose 1.2% month-on-month, supported by a 2.1% increase in Central and early recovery in Wanchai and Causeway Bay.

Outlook

Hong Kong’s property market is showing a more positive tone, supported by stronger residential sales, selective investment demand and improving office leasing activity.

Momentum is still likely to vary by segment, but prime locations, well-priced new launches and core office districts may continue to attract stronger buyer and tenant interest.

Source: The Land Registry, JLL

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Hong Kong’s property market continued to show mixed performance in early 2026, with the office sector facing ongoing challenges while residential demand remained relatively resilient. Although leasing activity in some office districts softened, healthy housing transactions and stable home prices suggest buyer confidence remains intact in key residential segments.

Office Market Faces Ongoing Pressure

The office market recorded negative net absorption during the quarter, reflecting cautious corporate expansion and continued vacancy challenges in certain districts. While leasing activity remained active in selected prime locations, performance varied across submarkets. Central continued to demonstrate resilience, supported by rental growth and improving occupancy, while some fringe office districts remained under pressure.

Despite these challenges, major corporate commitments continued to support the market. Large leasing transactions and investment activity indicate that occupiers remain focused on quality buildings in strategic locations.

Residential Demand Holds Firm

The residential market delivered a stronger performance, supported by healthy transaction activity and stable pricing. First-quarter residential transactions reached their strongest level in several years, reflecting improving buyer sentiment and continued interest in well-located projects.

Home prices remained largely stable, while new launches continued attracting attention from both owner-occupiers and investors. Demand for premium and luxury properties also remained active, highlighting confidence in Hong Kong’s long-term residential market fundamentals.

Selective Market Favouring Quality Assets

One of the key themes emerging in 2026 is growing selectivity among buyers and investors. Demand is increasingly concentrated in well-located residential projects, prime office assets, and quality developments with strong long-term fundamentals. Rather than broad-based market growth, performance is becoming more dependent on asset quality and location.

This trend is creating opportunities for investors who focus on resilient sectors while remaining cautious toward weaker-performing segments.

Outlook

Hong Kong’s property market is expected to remain selective through the second half of 2026. While the office sector may continue facing pressure from elevated vacancies, residential demand is likely to remain supported by stable pricing, healthy transaction volumes, and continued interest in quality developments. Markets with strong fundamentals and strategic locations are expected to outperform as investors prioritise resilience and long-term value.

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Hong Kong’s property market showed signs of improving momentum in February 2026, with both the office and residential sectors recording positive activity.

In the office market, Grade A leasing recorded positive net absorption of 143,700 sq ft, supported by demand from the banking sector. Major leasing deals included Standard Chartered Bank taking space at One Causeway Bay and Rabobank securing space at One IGC in West Kowloon.

Office Market Shows Early Improvement

Office occupancy improved in Central and Wanchai / Causeway Bay for the third consecutive month. The overall office vacancy rate fell to 13.4%, while Central’s vacancy rate dropped to 9.9%.

Rents also improved, with overall office rent rising 1.1% month-on-month. Central led the increase with a 2.3% rise, showing that prime office locations are starting to regain stronger tenant demand.

Residential Sales Continue to Build Momentum

Hong Kong’s residential market also remained active, with total residential sales reaching 6,669 units in February, around 1,000 units higher than the previous month.

Secondary market transactions made up 4,102 units, while primary sales reached 2,567 units. Mass residential capital values also grew 0.5% month-on-month, showing modest but positive price movement.

Luxury and Primary Market Demand Remain Visible

The primary market continued to attract buyers, with Kennedy Bay in Kennedy Town selling all 48 units launched in its first round. Average prices ranged between HKD 24,800 and HKD 29,400 per sq ft.

The luxury segment also remained active. One house at 110 Repulse Bay Road was sold for HKD 372.9 million, or HKD 90,929 per sq ft, showing that high-end demand is still present for rare and premium assets.

Outlook

Hong Kong’s property market is showing early recovery signals, but the improvement is still selective. Prime office areas such as Central may continue to benefit from stronger leasing demand, while residential activity could remain supported by better buyer sentiment and new project launches.

Overall, Hong Kong is entering a more stable phase. The strongest opportunities are likely to remain in well-located office assets, quality residential projects and premium properties where demand is still more resilient.

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Improving Office Demand and Stable Residential Activity

Hong Kong’s property market is showing steady signs of recovery in early 2026, supported by improving office demand and stable residential activity. Market conditions are gradually strengthening as both leasing and transaction volumes pick up.

Office Market Shows Stronger Leasing Activity

The office sector is improving, with strong demand from the financial industry driving higher occupancy. Vacancy rates are declining across key districts, while rents continue to rise, led by prime areas like Central.

Residential Market Remains Stable and Active

Residential activity remains healthy, with steady transaction volumes across both primary and secondary markets. Prices have stabilised, while new project launches continue to attract both homebuyers and investors.

Outlook

Hong Kong’s property market is gradually recovering, with improving fundamentals across both office and residential segments. As demand strengthens, the market is moving towards a more stable and sustainable growth phase.

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In November, Hong Kong’s residential market saw a 2.2% decline in transaction volume but a 1.2% rise in total consideration to HKD 51.7 billion. Mass residential capital values continued their 0.6% m-o-m rise, marking the third consecutive month of increases.

Developers have been actively launching new projects, reducing unsold inventory. The
expected supply months for the end of 2025 is forecasted to drop to 51.3 months, from 67.4 months in 2024. The luxury market saw a sale at Deep Water Bay Road 39, fetching HKD 342 million, marking a 2.8% loss from 2015.

Retail sales grew by 6.9% y-o-y in October, with electrical goods and food categories showing strong resilience. Inbound visitor arrivals surged by 12.2% y-o-y, with Taiwan seeing the strongest increase.

The leasing market remained active, with major deals like HSBC leasing space in Causeway Bay for HKD 4 million per month. Investment activity slowed, with Uni Investment Development Ltd acquiring a property in Kowloon Bay for HKD 131.8 million, yielding 7.3%.

The post Hong Kong Property Market Update: Residential Growth Continues, Retail Sales Surge -December 2025 appeared first on IQI Blog.

Written by Nelson Li, Head of IQI Hong Kong 

Office Sector 

Hong Kong’s Grade A office market posted a strong performance in October, with net absorption reaching 293,300 sq ft—driven by continued consolidation and a flight-to-quality as tenants capitalise on attractive lease terms.

Notably, Migao Group Holdings expanded its footprint, leasing over 10,000 sq ft at Cheng Kong Center II in Central. 

Vacancy rates continued to ease overall, dipping to 13.1%, with notable declines in Wanchai/Causeway Bay (10.5%) and Tsimshatsui (7.5%).

Central saw a marginal rise to 11.5% due to tenant relocations within the submarket. 

Office rents remained broadly stable month-on-month.

Central recorded its first rental increase since May 2022, edging up by 0.1%, alongside a similar gain in Tsimshatsui. 

In a landmark transaction, Alibaba and Ant Group acquired the top 13 floors of One Causeway Bay, including signage rights and parking, for HKD 7.2 billion—Hong Kong’s largest office deal since 2021. 

Residential Sector 

The residential market continued to gain traction in October, with total transaction volume up 1.3% month-on-month to 5,714 units—the highest monthly value of the year at HKD 51.1 billion. 

Mass residential capital values climbed 0.8% month-on-month, following a 0.6% rise in September.

Mortgage conditions also improved, as several banks lowered prime rates by 12.5 basis points to 5.0%, easing borrower pressure and supporting broader market recovery. 

On the primary side, Henderson Land’s “woodis” development in Wanchai sold out its first batch of 75 units, achieving prices between HKD 20,400 and 25,800 per sq ft. 

In the luxury segment, a villa at Twelve Peaks on The Peak changed hands for HKD 352 million—equivalent to HKD 80,752 per sq ft. 

Source: The Land Registry, JLL

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Written by Nelson Li, Head of IQI Hong Kong 

Hong Kong’s office sector recorded a positive shift, achieving 143,700 sq ft of net absorption, largely driven by increased leasing activity from banks and multinational firms. The overall office vacancy rate dipped to 13.4%, with Central improving to 11.0% and Wanchai/Causeway Bay easing to 12.0%.

Rents slipped marginally by 0.1% month-on-month, though early stabilisation signs appeared in select prime buildings. A notable transaction saw a whole floor in COSCO Tower sold for HKD 220 million, the lowest price recorded there since 2010, reflecting the market’s adjustment phase. 

Overall, it signalled gradual stabilisation as corporate tenants continued consolidating and upgrading workspace. 

In the residential sector, momentum strengthened as primary market transactions rose 10.8% m-o-m to 1,974 units, while secondary sales climbed to 3,669 units, lifting total activity by 6.7%.

Mass residential capital values increased by 0.6%, reversing August’s decline. Lower financing pressure helped support sentiment as the one-month HIBOR reached 3.6% and banks reduced prime rates following the US rate cut.

Demand for new launches remained strong, with The MVP in Mid-levels West selling all 50 units in its first release. The luxury segment also saw activity, highlighted by a HKD 138 million sale at One Stanley.

These trends point toward a market gradually recalibrating under improving liquidity and buyer sentiment. 

The post Hong Kong Property Outlook 2025: Stabilising Momentum and Renewed Activity  appeared first on IQI Blog.

Written by Nelson Li, Head of IQI Hong Kong

Hong Kong’s office market recorded positive momentum in August 2025, with net absorption reaching 313,800 sq ft—driven by rising demand from IPO activity and wealth management tenants.

Central and Tsim Sha Tsui led the improvement, with vacancy rates tightening to 11.2% and 7.6% respectively.

Although overall office vacancies nudged up to 13.5% due to new supply from One Causeway Bay, the rental decline has started to slow.

Average monthly office rents fell by just 0.2%—the smallest drop in 2025—with the sharpest decreases in Hong Kong East (-0.6%) and Kowloon East (-0.3%).

Central saw only a 0.1% decline. A notable deal included a full-floor acquisition at International Enterprise Centre Phase 1 for HKD 71.8 million. 

The residential sector saw a slowdown in transactions, with total sales volumes falling 8.2% month-on-month to 5,291 units.

The primary market contributed 1,781 units, while the secondary market accounted for 3,510. Mass residential capital values declined by 0.5% in August, reflecting continued volatility.

Despite the softening, market activity remains healthy: July mortgage applications rose 4.9% month-on-month, with loan approvals surging 11.2% to HKD 30.6 billion.

The Headland Residences Phase 1 saw a 47% absorption rate on launch day, while the luxury market made headlines with the sale of a penthouse at 1 Gough Hill on The Peak for HKD 1.09 billion—setting a new record at HKD 95,014 per sq ft. 

The post Hong Kong’s Property Market in August 2025: Office Absorption Up, Residential Faces Price Pressure appeared first on IQI Blog.

Office Sector: 
Hong Kong’s office market showed signs of recovery in July 2025, with a positive net absorption of 189,500 sq ft, largely driven by a flight-to-quality trend as tenants take advantage of softening rents. While the overall Grade A office vacancy rate improved slightly to 11.6%, certain submarkets like Kowloon East and Wanchai/Causeway Bay still have high vacancies. Monthly office rents declined 0.5% overall, with Hong Kong East recording the steepest drop at 2.8%. Key leasing transactions took place in premium buildings such as Two Harbour Square and the Manulife Financial Centre. Meanwhile, a notable asset disposal in Central highlighted continued investor activity despite the cautious rental environment. 

Residential Sector: 
In the residential market, overall transaction volumes dipped 3.1% month-on-month in July, though secondary market activity increased. Mass residential capital values edged up 0.3% as buyers gravitated toward more affordable housing options amid narrowing price gaps between private and subsidized flats. The luxury segment also saw movement, with a unit at TWELVE PEAKS selling for HKD 288 million—a 37% discount from its 2018 price. Despite a slowdown in total consideration value, positive sentiment persists in the primary market, evidenced by strong uptake at new project launches like Deep Water Pavilia. 

 
Source by Jones Lang Laselle, The Land Registry  

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