Hong Kong real estate: Three major property demand continues to enter the market, it is expected that Hong Kong property prices could rise by about 10% by 2026 at the most optimistic.

Director Wang Pindi of the Research Department of Hong Kong Real Estate stated that 2025 is a turning point for the Hong Kong property market. With the promotion of various favorable policies, market confidence has significantly recovered, property prices have stopped falling and started to rise again. The three major demands for self-occupation, rental, and investment support the market, indicating a comprehensive return of market momentum. It is expected that the three major demands will continue to enter the market in 2026, driving property prices to potentially increase by about 10% in an optimistic scenario. Wang Pindi pointed out that in 2025, the Hong Kong property market has emerged from the adjustment period, with buyer confidence restored and actively entering the market, along with investors entering the market due to improved rental returns. At the same time, the enhanced market liquidity has attracted some short-term funds looking for opportunities, making the three major property demands the new pattern of recovery in the Hong Kong property market. It is expected that property prices will see an increase of about 5% for the entire year, reversing the trend of continuous decline over the past three years. The primary residential market is undoubtedly a strong driver of the property market this year. As of November, the number of primary transactions has remained above 1,000 units for ten consecutive months. The total transaction amount in the first eleven months is close to HK$190 billion, surpassing the total for the whole of last year and reaching a new high in four years. The number of primary transactions has reached a new high since the implementation of the Primary Residential Sales Ordinance in 2013, with the possibility of challenging the 20,000 mark for the whole year. The secondary market is also following closely behind, with the total number of secondary transactions expected to exceed 45,000 units for the whole year, setting a new high in four years. The property price index reflecting market prices has risen by over 4.2% within the year, with a projected annual increase of about 5%, successfully reversing the downward trend of the past three years, indicating a rise in both price and volume in the secondary market. Driven by expectations of interest rate cuts and rising rents, the demand for "rent-to-buy" and long-term investors have been entering the market, leading the property market into a virtuous cycle.