Home prices seen rising up to 10% in 2026

The market may enter a consolidation phase after residential prices advanced 7.4% year-to-date.

Residential property prices are expected to increase by 5% to 10% in 2026, although growth may ease during the remainder of the year, according to CBRE.

Prices have already risen 7.4% year-to-date, leaving limited room for further gains and raising the likelihood that the market will enter a consolidation phase as earlier increases are absorbed.

The recent correction in Hong Kong’s stock market could weaken buyer sentiment, whilst tighter mainland Chinese regulations on outbound investment may reduce capital flows into the property sector.

These pressures could weigh on investment demand and lead to lower transaction volumes in the coming months.

In contrast, the residential rental market is expected to remain resilient, supported by talent inflows under government admission schemes and a steady increase in non-local students.

Leasing activity could strengthen further in the third quarter, which typically benefits from student arrivals and corporate relocations during the summer.

CBRE expects residential rents to rise by 5% to 8% in 2026, with the potential to reach new record highs.