Valuer Insights

Business Insights | Hong Kong Residential Insights November 2025

By Valuation & Advisory Services

November 21, 2025

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

Snapshot

Home Prices Return to Positive Y-o-Y Growth

Hong Kong’s residential market extended its recovery, with home prices continuing their upward trajectory for the sixth consecutive month, reaching a nine-month high. The private home price index climbed to 292.5 in September, up 1.14% m-o-m and, for the first time this year, posting a positive y-o-y gain of 1.6%. This long-awaited shift from previous declines represents clear evidence of market bottoming out, signaling renewed buyer confidence and strengthening fundamentals.
October Interest Rate Cut Boosts Sales Momentum

Following two consecutive rate cuts—0.25% in September and another 0.25% in October—Hong Kong’s residential market has experienced a noticeable rebound in buyer sentiment. Lower borrowing costs have enhanced affordability, prompting both end-users and investors to re-enter the market. This renewed confidence has driven stronger activity across both primary and secondary segments. In October 2025, total transactions rose 1.3% m-o-m to 5,714 units, while total considerations surged to HK$51.1 billion – the highest monthly figure so far this year. Transaction volumes have consistently exceeded 5,000 units for eight straight months, marking the longest sustained streak since the market downturn in late 2021.
Year-to-date Primary Transactions Surpassed Full-Year 2024 Levels

According to the Land Registry, year-to-date primary residential transactions have reached 16,979 units, surpassing the 16,912 units recorded for the whole of 2024. This highlights a significant rebound in market activity. Active developer launches of primary home sales at competitive pricing, coupled with improved financing conditions and a buoyant stock market, have fueled strong buyer responses, underscoring resilient demand in the new-home segment. Looking ahead, we expect an additional 10,000 units of transactions in the final two months of the year, bringing full-year 2025 residential transaction to approximately 60,000 units, up 13% from 2024 levels.

Outlook

Following the U.S. Federal Reserve's cumulative rate cuts of 0.5% in September and October, major banks in Hong Kong lowered their Prime Rates by a total of 0.25% as of October, resulting in lower effective mortgage rates. A lower borrowing cost will drive more buyers entering the residential market, lending support to property prices.
We believe the residential market is bottoming out, though the pace of recovery is expected to remain modest. We expect 2025 to conclude with a positive growth of residential prices, within a range of around 2%.
After emerging from a trough in 2025, Hong Kong’s property market is expected to further recover in 2026, following a steady recovery trajectory, with prices projected to rise by around 3%, making the start of a new upward cycle.