Hong Kong housing market shows signs of stabilization: CBRE

Kwok noted developers are prioritizing capital recovery over pricing power, creating downward pressure on overall residential values.

Hong Kong’s housing market may be bottoming out after a prolonged downturn that began in 2021, according to real estate services firm CBRE.

The latest home price index from the Rating and Valuation Department shows signs of market stabilization, supported by improving sentiment and sustained low interest rates.

These conditions have reintroduced “positive carry” which is drawing both end-users and purchase-to-lease investors back into the market, said Eddie Kwok, Executive Director of Valuation & Advisory Services at CBRE Hong Kong.

To offload high inventory levels, developers are actively pushing primary sales. However, this uptick in transactions hasn’t led to price gains.

Kwok noted developers are prioritizing capital recovery over pricing power, creating downward pressure on overall residential values. The secondary market, he added, will likely need to adjust its asking prices to stay competitive.

Looking ahead, CBRE expects price cuts from developers to ease as inventory levels decline, which could help support broader price stability.

“Given the improvement in market sentiment coupled with current low financing cost situation, we are optimistic that we are proceeding to a bottom out. This may also call an end to the residential market correction since 2021,” Kwok said.