Valuer Insights

Business Insights | Hong Kong Residential Insights August 2026

By Valuation & Advisory Services

September 8, 2026

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Hong Kong residential prices declined by 0.5% in July, ending a 13-month streak of monthly gains and marking the first price correction since March 2025. The price correction was broadly in line with market expectations following the strong rally recorded in 1H 2026.
Transaction momentum has moderated. While primary sales averaged approximately 2,000 units per month during 1H 2026, July recorded only 796 first-hand transactions, signalling a slowdown in purchasing activity and a more cautious buyer outlook.
While the broader market is entering a consolidation phase, the luxury sector remains relatively resilient due to limited supply, wealth preservation demand and continued participation from Mainland HNWIs.
In contrast to the sales market, the residential leasing market continues to strengthen. Residential rents have risen by approximately 3.4% YTD and continue to show broad-based growth across most market segments.

Hong Kong’s luxury residential sales market continues to outperform the broader housing sector, although transaction activity may become more selective amid a softer investment environment.
Meanwhile, the luxury leasing market continues to strengthen, supported by a notable increase in expatriate relocations and international talent inflows.
The return of expatriates is benefiting traditional luxury residential districts including Mid-Levels, The Peak, Southside, Repulse Bay, Stanley and Kowloon Tong, where leasing demand remains concentrated among senior executives and high-income professionals.

Looking ahead to the remainder of 2026, Hong Kong's residential market is expected to transition from a rapid recovery phase into a period of more sustainable and selective growth.
The residential leasing market is expected to remain the strongest-performing segment through the rest of 2026.
While concerns over mainland regulations on outbound investment and tighter monitoring of capital outflows may temporarily moderate purchasing activity among mainland investors, the impact on Hong Kong's luxury residential sector is expected to be relatively contained.
CBRE expects the residential market to remain fundamentally stable through the remainder of 2026.