Hong Kong luxury home prices to drop by up to 5%

That is for homes worth HK$20 million to HK$40 million.

In the first half of 2025, Hong Kong's luxury property market experienced increased activity due to a rise in distressed units, which were often sold at lower prices. William Lau, Senior Director, Head of Residential Agency, Knight Frank, said this attracted cash-rich buyers, creating opportunities for investors to acquire high-value properties at reduced rates. 

“As a result, luxury prices temporarily stabilised. We anticipate a 0% to 5% drop for residential homes priced between HK$20 million and HK$40 million, while homes valued over HK$40 million are expected to remain stable,” Lau added.

Here’s more from Knight Frank:

Meanwhile, the leasing market has outperformed the sales market, driven by heightened demand from the Top Talent Pass Scheme. The unique characteristics and limited availability of luxury properties have contributed to the stability and strong performance of the luxury leasing sector. 

Notably, there has been significant activity in Mid-Levels, particularly for units ranging from 800 to 1,000 sq ft, which are popular among families in need of additional storage space. Overall, we expect luxury rents to increase by 0% to 3% this year.