Hong Kong residential transaction volume to reach up to 62,000 in 2025

There were 16,700 units transacted in Q3 alone.

According to a Knight Frank report, Hong Kong’s residential market demonstrated resilience in September 2025, with total transactions rising 6.7% MoM to 5,643 units. Primary sales led the growth, increasing by 10.8% to 1,974 units, while secondary sales rose 4.5% to 3,669 units.

In September, the share of primary transactions rose to 35% of the total sales, compared to just 18% during the same period last year.

Here’s more from Knight Frank:

For Q3 overall, transaction volume reached 16,700 units, reflecting only a slight 0.3% QoQ decline, underscoring a steady market momentum. The momentum was underpinned by a strong rebound in the stock market and a 25-basis-point rate cut by HKMA to lift buying sentiment.

Despite an uptick in activity, property prices remained soft as developers focused on clearing unsold inventory. Around 13,000 first-hand completed units available for sale, with Kai Tak and Tuen Mun holding the largest shares. To drive sales, developers offered deeper discounts on the new projects, which in turn exerted downward pressure on secondary market prices. As a result, the private residential price index dropped by 1.2% YoY or 0.2% YTD.

Well-located and competitively priced developments continued to outperform. For example, The MVP in MidLevels West achieved a 97% sales rate with an average sales price (ASP) HK$31,400 per sq ft, while House Muse in Kowloon City sold 96% of its units with ASP HK$19,100 per sq ft—highlighting sustained demand in prime locations. In Q3, 14 new developments were launched, adding 4,299 units across the city. We expect that more small- to medium-scale projects (typically fewer than 500 units) are expected in the coming months.

The luxury residential segment also showed resilience, recording 56 transactions over HK$78 million (US$10 million)—a 3.7% increase QoQ—amounting to HK$81.3 billion in total value. A standout deal was a 4,736 sq ft unit at 8 Deep Water Bay Road, sold for HK$319 million (HK$67,356 per sq ft), underscoring the enduring appeal of trophy assets among homebuyers.

Meanwhile, the leasing market continued to outperform, rising 1.1% MoM in August or 3.2% YTD. Mass market leasing remained active, driven by strong demand from students and professionals—particularly in areas near HKU, which saw a surge in enquiries and site inspections. Luxury leasing held steady, supported by demand from AI professionals and mainland Chinese investors, despite seasonal slowdowns.

Since the implementation of the progressive rating system for domestic tenements in January 2025, tenant preferences in the luxury segment have shifted. Some tenants are opting for smaller units or compromising on views to reduce rental costs and rating exposure. 

For instance, a unit with a rateable value of HK$2,000,000 — equivalent to a monthly rent of HK$166,667 — now incurs an additional HK$91,500 in annual rates, representing a 92% increase from previous levels. While the new system primarily affects properties with a rateable value exceeding HK$550,000 — representing just 2% of private domestic tenements — its impact is concentrated in the luxury market.

Looking ahead, total transaction volume is projected to reach between 60,000 and 62,000 units in 2025. Prices are expected to increase 2% to 3% this year, with a potential rebound of up to 5% in 2026.