Hong Kong luxury residential rents to increase by up to 5% by year-end

The influx of Chinese families will drive the rental growth.

Amid oversupply and financial pressure, Hong Kong developers will likely maintain aggressive pricing strategies to sustain sales momentum. JLL analysts expect mass and luxury residential capital values to drop by about 5% and 5-10% in 2025, respectively.

“Luxury rents are projected to continue rising, driven by an influx of mainland Chinese families and accelerating return of expatriates. We expect luxury residential rental values to rise by 0-5% in 2025,” the analysts added.

Here’s more from JLL:

HIBOR declined sharply from 4.1% at end-April to 0.9% by end-June. For a 30-year mortgage, this resulted in a monthly payment reduction of about 15.4%. The lower rates bolstered market confidence, driving a 37.5% q-o-q increase in residential transactions in Q2.

Deep Water Pavilia in Wong Chuk Hang launched 101 units at an average price of HKD 20,932 per sq ft, undercutting all completed Southside projects. Mass residential capital values edged down by 0.4% q-o-q in Q2 2025.

One residential site will be tendered in Q3 2025

In Q1 2025, 9 luxury residential units were completed. These included eight units at ‘Onmantin’ in Homantin, and one unit at 48A&50 La Salle Road in Kowloon Tong. A total of 345 luxury residential units are expected to be completed in 2025.

In Q3 2025, The Government will tender a residential site at Hoi Chu Road, Tuen Mun (TMTL 569), with an estimated capacity of 525 residential units.

Luxury residential rents continue their upward trajectory

Demand in the luxury leasing market continues to be bolstered by an inflow of mainland families and the return of expatriates, with rental values rising by 0.3% q-o-q in Q2 2025.

Sales momentum is rebuilding in luxury residential markets. In Q2 2025, the transaction volume for properties valued at or above HKD 50 million increased by 70.0% q-o-q. Meanwhile, luxury residential capital values declined by 1.1% q-o-q in Q2 2025.