Luxury property market stable despite sector slowdown: report

Despite a slowdown in the broader property sector, Hong Kong’s prime residential market is expected to rebound in 2025.

Hong Kong remains one of the world’s top cities for super-prime property transactions, with 166 ultra-luxury real estate sales recorded in 2024, according to Knight Frank’s Wealth Report 2025.

Whilst economic uncertainty dampened overall market activity, demand from ultra-high-net-worth individuals (UHNWIs) kept the high-end sector resilient.

Despite a slowdown in the broader property sector, Hong Kong’s prime residential market is expected to rebound in 2025, driven by recent policy shifts and more favorable financing conditions.

The relaxation of property-buying restrictions and potential interest rate cuts are anticipated to boost investor sentiment and transaction volumes in the coming months.

Knight Frank said Hong Kong continues to be a leading destination for UHNWIs, with over 42,700 individuals holding a net worth exceeding $77.7m (US$10m).

Whilst some investors have explored alternative markets such as Singapore and Tokyo, Hong Kong remains an attractive wealth hub due to its established financial infrastructure, strategic location, and ultra-luxury property offerings.

It also noted Hong Kong’s wealthy individuals continue to favor real estate as a primary investment vehicle, alongside equities, private equity, and digital assets.

Scarcity of prime real estate and sustained global demand for trophy properties ensure that the super-prime market remains an important asset class for the city’s elite investors.

Economic trends in Mainland China have also influenced capital flows, with some affluent Chinese buyers shifting their focus to international markets, including Hong Kong.

This movement is expected to persist into 2025, offering both risks and opportunities for the local real estate sector.

(1 USD = 7.77 HKD)