Hong Kong capital markets see strong year-end surge in transactions above HK$100m

The market is expected to continue its momentum in 2026.

Hong Kong’s capital markets experienced a notable uptick in 2025, with high-value transactions rising sharply, according to Knight Frank.

Antonio Wu, Head of Capital Markets, Greater China at Knight Frank, said, “In 2025, properties valued at HK$100 million or more saw a total transaction volume of HK$60.3 billion across 151 transactions, up 45% compared to 2024.” He noted that 106 of these deals took place between June and December, marking a surge of over 77% year-on-year for the second half of the year.

The office sector led the market, accounting for 48% of total activity, supported by rising end-user demand, stabilised prices, and revived Chinese IPO activity, Wu said. Residential investment followed at 26%, driven by strong end-user and investor demand, heightened developer appetite for private development sites, and an increase in site sales.

Hotels and serviced apartments accounted for 10% of transactions, with supply continuing to fall short of demand. Wu highlighted that the purpose-built student accommodation (PBSA) gap remains a key focus for institutional investors. Retail transactions, by contrast, remained subdued at 5%, reflecting weak consumer confidence and structural changes in spending habits.

Looking ahead to 2026, Wu expects momentum across Hong Kong’s major capital market sectors. “The PBSA sector is expected to continue attracting both local and foreign investors, while hotel transactions are likely to remain active,” he said. Office transactions are projected to rise further, driven by end-user demand and growing investor interest.

Wu also highlighted that Chinese mainland buyers are expected to continue supporting the super-luxury residential segment, with home prices likely trending upward in the second half of 2026. Additionally, receivership sales are expected to remain a significant driver of activity in the sales market.

“Overall, 2026 looks set to be another active year for Hong Kong’s capital markets, underpinned by resilient demand across offices, residential investment, and alternative sectors such as PBSA,” Wu said.