Jones Lang LaSalle: The time it takes for new properties to sell has significantly shortened, and it is expected that property prices in Hong Kong will stabilize and see limited growth in the second half of the year.

Jones Lang LaSalle (JLL) Hong Kong Chairman Tony Chan said that the property market in Hong Kong continues to show signs of recovery, with overall residential transaction volume increasing by 44.2% in the first five months of 2026 compared to the same period last year. During the same period, overall property prices rose by 7.4%. Compared to the low point in March 2025, property prices have already rebounded by 13%. The rapid pace of sales of new properties has significantly accelerated the market's inventory turnover. Chan noted that based on the current sales pace, the time needed to clear remaining inventory has decreased from 101.6 months in December 2023 to 44.3 months in March of this year, even lower than the average of 51.3 months during the bull market period from 2015 to 2021. This means that inventory pressure has significantly eased, and developers are no longer constrained by overhangs. However, there are still concerns about the future, including risks of interest rate hikes, inflationary pressure, and stock market volatility. Chan pointed out that due to recent stock market fluctuations, the pace of transactions in May has slowed down. Looking ahead to the second half of the year, he believes that rising inflationary pressure may dampen buyers' intentions to enter the market, and he expects residential property prices in Hong Kong to increase by 5% to 10% for the whole year. Most of the price increases are expected to have been realized in the first half of the year, and property prices in Hong Kong are likely to stabilize in the second half of the year, with no downward pressure.