Valuer Insights

Business Insights | Hong Kong Residential Insights September 2025

By Valuation & Advisory Services

October 27, 2025

hong-kong-residential-report-valuation

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

Snapshot

  1. Seven-Month Streak of 5,000+ Residential Transactions

    Hong Kong’s residential market continued to demonstrate strong momentum in September, with total transactions reaching 5,643 units— up 6.7% m-o-m and a remarkable 98.1% increase y-o-y. Residential transactions totaled 45,647 units YTD, marking a 20.1% increase compared to the same period last year. This surge reflects growing buyer confidence and a clear upward trend in sentiment.

  2. Home Prices Reach Eight-Month High

    Since April 2025, home prices in Hong Kong have stopped declining, with signs of a gradual recovery emerging in the residential market. In August 2025, home prices reached an eight-month high. Cumulatively, prices have gained 1.3% since March, suggesting further evidence that residential property prices have bottomed out and are on the rise.

  3. Upward Momentum in Rental Prices Persists

    The rental index rose by 1.1% m-o-m, continuing its ninth consecutive month of growth. Rents are now up 3.2% YTD and 1.9% y-o-y. Luxury residential shows relatively better performance in the leasing market, driven by strong demand from various talent schemes, with rental prices of larger units (Class D & E) increased by 3.6% YTD.   

  4. Stamp Duty Data Signals a Growing “Rent-to-Buy” Trend in the Market

    According to the Financial Services and the Treasury Bureau, stamp duty revenue from property leases in 1H FY2025 (April–September) fell sharply to HK$350 million—a 30% drop compared to the same period in 2024. Meanwhile, revenue from property transactions rose 7% y-o-y to HK$9.2 billion. The figures reflect a growing “rent-to-buy” trend in the market amid the ongoing interest rate cut cycle.


Outlook  

  • Hong Kong’s residential market is poised to maintain its recovery trajectory in the remainder of 2025 and early 2026. As mortgage costs decline, the financial appeal of buying over renting has become more pronounced. With transaction volumes expected to rise further in the coming months, the market is expected to experience a period of continued and steady growth.

  • Looking ahead, the primary market is expected to remain the key driver of activity. While developers may initially adopt cautious pricing strategies to clear existing inventory, the robust sales performance suggests that residential prices are likely to stabilize through September and into the fourth quarter.

 

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