Hong Kong Home Prices Hit 30-Month High as Mainland Buyers Drive Recovery

Hong Kong lived-in home prices rose for an 11th straight month in April to their highest level in 30 months, as mainland Chinese buyers and improving sentiment helped extend the city’s housing rebound.

The private lived-in home price index climbed 0.89 percent in April from the previous month to 316.6, according to the Rating and Valuation Department, marking a slower pace of growth after a 1.8 percent March gain but keeping the market on track for a second year of recovery. April’s index represented a 10.51 percent year-on-year increase.

“The 11 consecutive months of price growth have been mainly driven by an influx of mainland Chinese buyers purchasing primary residential units, which has supported overall housing prices,” said Norry Lee, senior director of project strategy and consultancy at JLL. “In addition, following a significant price correction over the past few years, pent-up demand has gradually been released.”

The advance follows a 3.6 percent increase in home prices during 2025, the first annual rise since the market peaked in 2021. Prices had tumbled nearly 30 percent from that high as elevated borrowing costs, an exodus of residents and weak confidence weighed on one of the world’s most expensive housing markets. 

S&P Global Ratings earlier this month said home prices could rise another 3 to 5 percent through year-end, taking the full-year increase to 8 to 10 percent.

Mass-Market Lift

The April reading extends a recovery that began in mid-2025, with the RVD’s monthly supplement showing the all-classes private domestic price index rising to 312.8 in March from 303.0 in January and 299.6 in December. Primary sales of domestic premises are excluded from the department’s price-index analysis.

The rebound has been led by smaller and mid-sized homes, with the RVD’s March data showing price indices for units under 100 square metres (1,076 square feet) rising to 314.8, while larger homes of 100 square metres or more climbed to 279.8.

Mainland demand has provided a further lift, with Midland Realty data showing purchases by mainland Chinese buyers jumping 48 percent in April from March to a two-year high and accounting for 27.5 percent of total housing purchases last month.

Eddie Kwok, executive director for valuation and advisory services at CBRE Hong Kong, said the first-hand residential market is showing robust absorption, with sustained demand shifting pricing power back to developers through recent price increases at new project launches.

“Strong momentum in the primary market is driving a wider recovery across the sector,” Kwok said. “Secondary home prices are also increasing as growing buyer confidence spreads across the residential market.”

CBRE expects residential prices to rise 8 to 10 percent for the full year, supported by stable demand, improving sentiment and ample liquidity, according to Kwok.

The April advance came after Hong Kong’s residential market logged a 4.4 percent increase in the first quarter, with the RVD’s preliminary data showing the all-classes price index climbing to 308.1 for the January-March period from 297.7 in the fourth quarter of 2025.

Rental Rally

Rents also continued to set records, with the private domestic rental index rising 0.59 percent in April to 203.4. The gauge was up 4.9 percent from a year earlier, extending a streak of rental gains supported by new arrivals and talent admission schemes.

The RVD’s March supplement had shown the all-classes rental index reaching 202.2, up from 200.8 in January, with smaller homes under 100 square metres and larger homes of 100 square metres or more both posting gains during the first quarter.

“Overall, the housing market outlook remains positive,” JLL’s Lee said. “However, as interest rates may rise, a faster increase in rates may slow price growth in the second half of the year, with gains likely lower than in the first half. At the same time, supported by talent admission schemes, residential rents are expected to continue rising and reach record highs.”