Hong Kong luxury residential rents to increase by 3% to 5% this year

Thanks to sustained interest from deep-pocketed buyers.

Hong Kong’s luxury residential property market is showing clear signs of recovery, with transaction activity in the top end of the market reaching its strongest levels in more than three years, according to Knight Frank.

William Lau, Senior Director and Head of Residential Agency at Knight Frank, said the rebound has been most pronounced in the super-luxury segment, defined as properties priced above HK$78 million. In the fourth quarter of last year, the segment recorded 80 transactions, marking the highest quarterly total since Q4 2021.

Momentum has carried into the start of 2026. Lau revealed that in the HK$50 million-plus segment, seven transactions were completed in the first week of January alone, following 46 deals in December, highlighting renewed confidence among high-net-worth buyers.

Knight Frank expects Hong Kong’s luxury residential market to strengthen further in 2026, supported by improving sentiment, sustained interest from cash-rich buyers and a structurally limited supply of luxury homes. The firm forecasts luxury home prices to increase by about 5% over the year.

The recovery is being driven by renewed demand from buyers from the Chinese mainland and overseas, alongside a gradual improvement in global economic conditions. Sales volumes are expected to rise further as market confidence improves and more buyers move off the sidelines.

Leasing activity in the luxury segment is also expected to remain on an upward trajectory. Demand is being underpinned by professionals and families from the Chinese mainland, local professionals and the return of expatriates from the finance and corporate sectors.

Prime residential areas such as Kai Tak and West Kowloon are particularly popular among mainland tenants, Knight Frank said. Luxury residential rents are forecast to rise by 3% to 5% in 2026, reflecting tight availability and sustained tenant demand.

Overall, Lau noted the combination of stronger sales activity, limited new supply and robust leasing demand is reinforcing the recovery in Hong Kong’s luxury residential market.