Valuer Insights

Business Insights | Hong Kong Residential Insights May 2026

By Valuation & Advisory Services

May 21, 2026

Download

In this report, we look into Hong Kong residential property market for May 2026.

Robust luxury market sales and broad-based market rebound with home sales surging 50.9% in April
Hong Kong’s residential property market recorded a significant, broad-based rebound in April, with total home sales value jumping 50.9% YoY to HK$63.7 billion, according to the Land Registry. Transaction volume rose 29.4% YoY, while sales value was also 15.4% higher than March.
Primary market drives prices, lifting secondary sales
A total of 7,368 residential transactions were concluded in April, up 16.7% MoM. Unsuccessful first-hand buyers have gradually spilled to the secondary market in search of alternatives, prompting secondary homeowners to adopt a more aggressive pricing stance and driving overall transaction prices upward.
Developers revive shelved projects

The market rebound has prompted some developers to revisit projects previously completed but withheld from sale. Notably, New World’s Pavilia Farm III in Tai Wai has returned to focus, underscoring developers’ improved confidence in demand conditions.
Stronger appetite for land acquisition
Improved market sentiment is also feeding through to the land market. Developers have stepped up bidding in government land tenders, with the government selling HK$8.4 billion worth of residential sites across five plots in the financial year ended March, compared with HK$2.8 billion in the preceding year.

Market conditions have improved significantly, with the luxury residential sector recording notably strong transaction activity. As of 15 Apr, 87 luxury residential units priced above HK$100 million had been transacted, representing approximately 135% YoY growth compared to the same period in 2025.
Trophy assets are increasingly being brought to market, likely reflecting owners’ intentions to recycle capital into new investments, particularly amid generational transitions. At the same time, affluent buyers remain actively in pursuit of such assets.

Overall, market sentiment in Hong Kong has improved markedly, with a recovery evident in both the capital markets and the property sector. In particular, the IPO market has shown signs of improvement, with fundraising activities gradually resuming. This reflects a rebuilding of investor confidence in the economic outlook and corporate earnings prospects. Increased capital inflows have also indirectly supported broader asset market performance.
As inventory units continue to be absorbed, the overall stock of unsold primary residential units has declined noticeably. Based on our observations, sales incentives for new homes are gradually being scaled back.
Looking ahead, we expect Hong Kong’s residential property market to remain in an upward trajectory in 2026. With supply pressures easing and developers adopting a firmer pricing stance, and assuming no major deterioration in the macroeconomic environment, full-year residential prices are projected to rise by approximately 8% to 10%.