Hong Kong home sales rise 9% to 18,654 units in Q1

Thanks to a 13% increase in secondary sales.

Hong Kong’s residential market strengthened in Q1 2026, with transaction volumes and prices rising amid resilient demand and improving sentiment, according to Knight Frank.

Total transaction volumes increased 9% quarter-on-quarter to 18,654 units, driven by a 13% rise in secondary sales, while primary sales remained broadly flat. Prices also trended upwards, rising 1.8% month-on-month in February and 1.4% in March.

Knight Frank attributed the recovery to increasing capital inflows and stronger buyer enquiries, with geopolitical uncertainties in the Middle East further reinforcing Hong Kong’s appeal as a safe haven. Mainland Chinese buyers remained active, with some acquisitions structured through investment vehicles.

In the primary market, new launches across Kowloon and the New Territories recorded strong take-up. Projects such as Grand Austin Bohemian sold all 64 units, Zendo House achieved a full sell-through of 164 units, and Sierra Sea (Phase 2B) moved 98% of its 775 units, reflecting broad-based demand across project sizes.

Luxury residential activity also picked up, with 96 transactions above HK$78 million recorded in Q1, up 19% q-o-q. A notable deal included a unit at Cullinan Harbour in Kai Tak, which sold for HK$139.2 million, or about HK$65,000 per sq ft.

The leasing market maintained steady growth, with mass market rents rising 4.7% year-on-year and 0.8% year-to-date as of March. Demand was supported by mainland Chinese professionals relocating to the city, with Wong Chuk Hang, Ap Lei Chau and the Western District among the most sought-after areas. Luxury rents outperformed, increasing 11.2% y-o-y, according to Knight Frank.

On the supply side, nine residential sites were sold between 2024 and 2026, mostly small- to mid-sized plots yielding fewer than 1,100 units each. Knight Frank noted that six sites recorded bid price gaps of less than 10% between top bidders, indicating less conservative sentiment, while many sites were located in established urban areas with strong demand fundamentals.

Looking ahead, Knight Frank said improving liquidity, transaction activity and end-user demand are expected to support further recovery, lifting its full-year price growth forecast to between 8% and 10%.

The firm added that strong primary sales could allow developers to scale back incentives and introduce modest price increases, with first-hand sales projected to reach around 20,000 units in 2026, in line with or exceeding 2025 levels.