Luxury home prices in Hong Kong to rise up to 8% in 2026

Super-prime residential demand strengthens as wealth buyers return.

Hong Kong's luxury residential market is becoming increasingly selective in 2026, with demand concentrating on high-quality first-hand developments in prime locations, according to Knight Frank.

The consultancy said developers are showing greater confidence in pricing and sales strategies for premium projects in Hong Kong Island and Kowloon, with shorter transaction timelines and less flexible payment terms reflecting strong demand for scarce, well-located assets.

Momentum at the top end of the market remains positive, with super-prime residential sales recording increases in both transaction volumes and total consideration, supported by sustained demand from high-net-worth buyers. Knight Frank noted that luxury prices remain 6.7% below the previous peak in Q4 2021, suggesting further room for recovery.

William Lau, Senior Director and Head of Residential Agency at Knight Frank, said the market is increasingly driven by resilience in prime segments, particularly where supply is limited.

The consultancy forecasts luxury residential prices to rise 5% to 8% in 2026, while luxury rents are expected to increase 3% to 5%. Rental growth is being led by the Peak and Island South, which continue to outperform traditional luxury districts.

Knight Frank added that sustained demand for prime homes in prestigious neighbourhoods is expected to underpin continued rental outperformance through 2026.