Lafang: Hong Kong housing prices are expected to significantly rebound in 2026, with an annual increase of between 5% and 8%.

Mr. Wang Zhaoqi, senior director of Laifang, head of the Greater China Research and Consulting Department, stated that the Federal Reserve cut interest rates by 25 basis points in December to boost the economy. The effects of the rate cut may take time to reach the market, but it is expected that the Hong Kong property market will begin to improve significantly after the Lunar New Year, with the possibility of a significant rebound in property prices by 2026, with a potential increase of 5% to 8% for the whole year. According to the Rating and Valuation Department, the Hong Kong residential property price index reached 297.3 points in November this year, a slight increase of 0.92% month-on-month and a consecutive increase for 6 months, with a year-on-year increase of 1.99%. The index has risen by a total of 2.8% in the first 11 months of this year. Mr. Wang Zhaoqi mentioned that the overall performance of the property market in 2025 was better than in 2024, with both prices and transaction volume increasing. He pointed out that adjusting stamp duty has helped increase transactions for lower-priced properties, but the rate cut has had the biggest impact on stimulating the overall property market. However, due to the high level of unsold inventory, Hibor has not been able to maintain low levels and significantly reduce mortgage rates. Therefore, the market purchasing power continues to favor new developments, while the prices of second-hand properties have not seen a significant increase this year. He also mentioned that the Federal Reserve cut interest rates by 0.25% in December to boost the economy, predicting that property prices will start to rebound significantly after the Lunar New Year, but before that, property prices in Hong Kong are not expected to see a noticeable increase. It is estimated that property prices will increase by about 3% in 2025. Mr. Wang Zhaoqi also stated that various talent programs implemented by the Hong Kong government have led to a slight increase in the labor force and high-income individuals, providing continued support for residential rental demand. The trend of residential rental prices is expected to remain stable in the coming months. It is projected that rental prices will continue to steadily rise in 2026, with a further increase of 3% to 5% year-on-year.