Housing transactions rise 18.3% as inventory contracts

Luxury deals jumped 45% whilst prices posted modest gains.

Hong Kong’s residential market recorded a recovery in 2025, with full-year transaction volume reaching 62,832 units, representing an 18.3% year-on-year (YoY) increase, according to a report by Knight Frank Research.

Primary market transactions rose 21.5% from a year earlier, whilst secondary market transactions increased 16.9%. The primary segment accounted for 33% of total sales, exceeding the five-year average of 27%, the report showed.

Residential prices edged higher, with the private residential price index recording a year-to-date gain of 2.8% in November, returning to levels last seen in September 2016. Eight first-hand projects launched during the quarter supplied 2,786 units, led by Kowloon with 1,693 units concentrated in Kai Tak and Yau Tong.

Luxury activity strengthened in the fourth quarter, with 81 transactions above HK$78m, marking a 45% quarter-on-quarter (QoQ) increase, the report said.

Leasing conditions improved alongside sales, with residential rents rising 0.2% month on month in November and 4.3% year to date.

Unsold residential inventory declined to about 11,250 units in December from 17,530 units in June 2025, according to Knight Frank Research.