Hong Kong home prices set to jump 3% to 5% in 2026

Analysts point to rate cuts and talent schemes pulling more buyers into flats.

Hong Kong home prices are expected to rise by around 3% to 5% in 2026, amidst a “wealth effect” driven by an active stock market, analysts said.
 

“We have observed more buyers actively entering the market, driving up transaction volume and signalling that property prices have bottomed out,” Eddie Kwok, executive director of Valuation & Advisory Services at CBRE Hong Kong, said in a research note.

Kwok added that 2025’s upward trend will likely spillover to 2026.

Kwok added that small-sized flats outperformed the broader market in 2025, recording a 4.1% year-on-year increase, partly driven by the government’s decision to cut stamp duty on homes priced at $4m. 

He added that new launches have continued to sell steadily, with more than 1,600 first-hand transactions recorded each month since April 2025, which he said signals that the peak of unsold new-home inventory has passed.

Alvin Leung, senior director of Valuation & Advisory Services at Colliers, cited interest rate cuts, sustained stock market gains, and demand linked to talent schemes and non-local students. 

Leung said that the luxury residential segment, due to its unique supply and superior locations, may see even more pronounced growth in 2026.

Leung added that non-local buyers accounted for as much as 70% of transactions in some first-hand developments last year, based on agency data, particularly in areas such as Kai Tak, West Kowloon, and Mid-Levels. 

Bowen Tsang, Senior Associate Director of Valuation & Advisory Services at Colliers, said rents still have room to rise. 
“As such, we anticipate a positive outlook for both residential prices and rents in the year ahead, with rents having room to grow by around 5%,” Tsang said.