Valuer Insights

Business Insights | Hong Kong Residential Insights July 2026

By Valuation & Advisory Services

August 3, 2026

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Hong Kong residential market remained active in June, with total residential transactions reaching 7,650 cases, the highest monthly level since the removal of cooling measures in 1Q 2024.
Home prices rose by 12.7% YoY for the 13th consecutive month in June, and soared 7.9% in the first half of 2026, to stand at their highest since September 2023.
The luxury residential market continues to outperform the broader housing sector. While the latest regulatory measures may moderate some cross-border capital flows, Mainland high-net-worth buyers continuing to participate actively as a significant portion of their capital is already positioned in Hong Kong.

Trophy homes in established luxury districts continue to attract buyers seeking wealth preservation. Developers have also maintained strong pricing power for premium inventory, reflecting sustained demand for scarce, high-quality assets.
On the supply side, the pipeline of large-sized residential units remains severely constrained as both market preferences and new land sales continue to favor smaller configurations.
This persistent supply shortage is expected to reinforce the scarcity value of luxury residences, supporting capital values and underpinning demand in the high-end residential market over the medium term.

As home prices have already accumulated a notable gain, further upside is expected to be limited in the short term. The residential market is likely to enter a consolidation phase in the coming months.
Recent corrections in the Hong Kong stock market may affect investor sentiment, while controls on outbound investment from Mainland China could reduce the flow of Mainland capital into Hong Kong's property market.