Hong Kong Property Market Rebounds: Is Now the Right Time to Buy?

炒年糕的貓貓
Oct 2, 2025
2 min read

Hong Kong’s residential property market has recently shown clear signs of recovery, with several key indicators reaching multi-year highs. In the third quarter of 2025, primary market transactions reached around 5,900 units, the highest level since Q2 2019, nearly six years ago.What factors are driving this surge in market enthusiasm?

1. Improved Financing Environment and Lower Capital Costs

As the U.S. Federal Reserve enters its rate-cutting cycle, mortgage rates in Hong Kong have also fallen. With the Hong Kong dollar pegged to the U.S. dollar, investors are benefiting from cheaper capital costs, enabling more flexible financial arrangements. This allows buyers to pursue a “low-cost entry, medium-to-long-term holding” investment strategy.

2. Strong Rental Demand with Yields Surpassing 4%

Hong Kong’s policy of raising the quota for international students at universities has attracted tens of thousands of newcomers each year. Many opt to rent small- to mid-sized apartments, driving strong demand in this segment.

According to market data, rental yields in some new urban projects have exceeded 4%, significantly higher than the previous 2%–3% range. For example, at “Ching Tin” in Aberdeen, a one-bedroom high-floor unit was recently rented out for HK$17,500 per month, achieving a yield of 4.1%. This reflects ongoing strength in the rental market.

3. Talent Schemes Boost Long-Term Housing Demand

Hong Kong’s talent admission initiatives, such as the Top Talent Pass Scheme, continue to deliver results, attracting tens of thousands of professionals to settle in the city. These individuals not only contribute to short-term rental demand but also represent a growing base of long-term homebuyers. This steady influx of new residents provides solid support for the housing market.

4. Rising Prices and Volumes Reflect Strong Purchasing Power

In the first three quarters of 2025, primary market sales reached around 15,500 units, averaging more than 5,000 transactions per quarter. If Q4 remains steady, annual sales are likely to surpass 20,000 units, the highest level since the implementation of the new first-hand property ordinance in 2013.

The market is also seeing both prices and volumes rise together. For instance, a full-floor special unit at the luxury development “The Westminster Terrace” in Mid-Levels sold for HK$355 million, achieving HK$75,400 per square foot — a strong vote of confidence from high-end buyers in scarce assets.

Meanwhile, the average transaction value of new projects in September rose to HK$12.8 million, up 73% from six months ago, reflecting the upward movement of purchasing power.

5. Professional Services Helping Clients Seize Opportunities

Amid the market rebound, we have been actively supporting clients in capturing the right opportunities. Recently, with our in-depth analysis and full support, a client successfully acquired a premium unit in the Kai Tak development area.

Our services go beyond transactions — we focus on long-term asset value. After the purchase, we immediately assisted with property handover, provided professional inspection services, and successfully helped lease out the unit, ensuring both capital appreciation and stable rental income.

Conclusion

Overall, with a more favorable interest rate environment, rising rental demand, and the positive impact of talent admission schemes, Hong Kong’s property market has built up momentum for a potential rebound.