Li Ka Ge: Hong Kong property prices are expected to end their consecutive decline in 2025 and rise by 3.25%. The upward trend is expected to continue in 2026.

Ricacorp Properties' head of property research, Chen Haichao, stated that the latest prices and rents in Hong Kong continue to rise, with property prices reversing a 3-year decline trend, rebounding by 3.25% for the whole year, while rents have been rising for 3 consecutive years, with a slightly larger increase year-on-year. According to the latest data released by the Rating and Valuation Department, the private residential price index in December 2025 was reported at 298.6 points, up by 0.23% from November's 297.9 points, marking the ninth consecutive month of stability or growth. Since the low point in March, there has been a cumulative rebound of 4.81%, reaching a high point in nearly 18 months. The index has been continuously rising for 7 months, with a total increase of 4.22%. In the whole year of 2025, property prices rose by 3.25%, marking the first rebound after 3 years of decline. Chen Haichao pointed out that although property prices continued to rise in December 2025, the rate of increase has narrowed due to the actual market conditions from mid-November to December, including a stock market correction and the fire at Hong Fu Court, which briefly cooled down the market sentiment. However, looking at the past six months, property prices have shown a significant increase of 4.15%, the best performance since the second half of 2019. Looking ahead to January 2026, Chen Haichao predicts that with the numerous festive holidays in late December and early January, property prices are expected to remain stable with a slight increase of up to 0.5%. However, recent market performance has been very lively, with new properties selling well and both prices and transactions of second-hand properties increasing, leading to expectations of a gradual expansion of the rate of increase in the future. It is estimated that property prices in 2026 will increase by at least 6% to 8%. In terms of rents, the latest data from the Rating and Valuation Department shows that the rental index in December 2025 increased by 0.10% compared to the previous month, reaching 200.7 points, breaking the peak for two consecutive months. The rental index, after revision by the department, remained steady in October of the previous year, but increased for two consecutive months in the off-peak season in November and December, with a total increase of 0.4%. Rents for the whole year of 2025 increased by 4.26%, marking the third consecutive year of increase and a 0.77 percentage point increase from 2024. Looking ahead to January 2026, rents are expected to remain stable, with a slight increase of 0.45% in the first quarter, and a projected increase of 3% for the whole year.