Savills World: Hong Kong stock market rise brings wealth effect, expected Hong Kong property prices to rise by about 3% this year.

According to the data from the Hong Kong Rating and Valuation Department, the residential property price index in Hong Kong reached 294.3 points in October this year, a slight increase of 0.4% compared to the previous month, marking the fifth consecutive monthly increase. Kelvin Ka, Executive Director of Valuation and Consulting Services at CBRE Hong Kong, stated that the rise in the Hong Kong stock market over the past year has brought about a wealth effect. More buyers are actively entering the market, leading to an increase in transaction volume and a stabilization of property prices. Looking ahead, with the expected reduction in the number of unsold units by a few thousand, developers may further reduce discounts, thereby contributing to a stable and upward trend in Hong Kong property prices. The residential property prices in Hong Kong are expected to rise by approximately 3% in 2025, and are likely to continue increasing in 2026, with a more significant increase estimated at around 3% to 5%. As for residential rents, they have already increased by 4% in the first 10 months of this year, surpassing the 3.5% increase for the entire previous year, reaching a new record high. It is expected that residential rents in Hong Kong will continue to rise, but in the short term, the growth may slow down due to the start of the new academic year at universities and the recent increase in lease-to-sale conversions. Additionally, as the Hong Kong government focuses on attracting quality talent and developing Hong Kong into an international education hub, the residential rental market will benefit from an increasing demand, leading to an estimated increase of approximately 3% to 5% in residential rents in 2026.