HK budget pivots to tech and talent amidst commercial property stagnation

Property impact is indirect, the firm says.

CBRE said Hong Kong’s 2026-27 Budget does not directly stimulate the commercial property market, but initiatives to enhance financial competitiveness and promote technology and innovation may still support demand.

The consultancy said the decision to withhold general commercial land sales for a second year is appropriate, given high vacancy rates in some property sectors.

Marcos Chan, head of research at CBRE Hong Kong, said the Budget’s investments and initiatives are intended to speed up economic transformation and lift competitiveness, whilst attracting global and Mainland enterprises and talent.

Chan cited the government’s GDP growth projection of 2.5% to 3.5% for 2026 and said expected interest rate cuts and rising home prices could increase property investment demand.

On policy risks for the luxury segment, CBRE said the proposed rise in stamp duty to 6.5% for transactions above $100m may lead to more company transfers and would mainly affect the primary sales market.

Hannah Jeong, head of valuation and advisory services at CBRE Hong Kong, said the creation of two dedicated companies for San Tin Technopole and Hung Shui Kiu Industry Park marks a structural shift in how industrial land is delivered, but warned of overlap risks with existing bodies such as HKSTP and said effective coordination and policy clarity will be critical.