Hong Kong luxury home prices to increase by up to 5% in 2026

Meanwhile, mass residential prices are expected to grow by up to 8%.

The Hong Kong residential market saw a gradual recovery. According to a Knight Frank report, as of November 2025, primary sales reached 18,801 units, up 17.3% YTD and exceeded 2024’s level. Secondary sales also reached 38,148 units, up 15.7% YTD. As such, total transactions have reached 56,949 units as of November.

“We expect total transactions to reach 60,000 – 62,000 units by year end, returning to 2021’s level.”

Here’s more from Knight Frank:

The luxury market also sustained momentum with record-setting sales. Notably, the month included a sale of a house at 39 Deep Water Bay, Unit 2, spanning 4,736 sq ft and sold for HK$342 million, equating to HK$72,213 per sq ft.

On the leasing market front, activity slowed due to seasonal factors. Investor activity has picked up, with increased acquisitions of smaller properties ranging from 220 - 250 sq ft for investment purposes, often leased to students.

With the rebounding sales momentum and market sentiment, we expect the luxury price +3% to 5%, mass price 5% to 8% in 2026. Similarly with strong tenant demand from professionals and families, luxury rents +3% to 5% and mass rents +3% to 5%.