Hong Kong home prices find a floor as sentiment lifts with market rally

CBRE believes the peak of unsold inventory has passed, with stock expected to decline gradually as sales continue.

Hong Kong home prices appear to have found a floor, supported by a year-long stock market rally that has lifted sentiment and transaction volumes, according to CBRE.

Eddie Kwok, executive director of valuation and advisory services at CBRE Hong Kong, said these factors have helped stabilise residential prices after a prolonged downturn.

Developers have sold more than 1,600 new homes per month since April, and CBRE believes the peak of unsold inventory has passed, with stock expected to decline gradually as sales continue.

CBRE forecasts home prices to rise by about 3% in 2025, followed by an additional 3% to 5% in 2026, as sales incentives taper alongside falling unsold supply.

Residential rents have reached a new high, rising 4% in the first ten months of this year compared with 3.5% for all of last year.

CBRE expects the uptrend to continue, though near-term growth may ease due to the start of the academic year and increased rent-to-own conversions.

Looking ahead, Kwok says government efforts to attract talent and develop Hong Kong as an international tertiary-education hub should support rental demand, with rents projected to rise about 3% to 5% by 2026.