Savills: The Hong Kong residential property market has bottomed out and is expected to see a price increase of 3% to 5% next year.

William Kwok, Executive Director of Valuation and Advisory Services Department at CBRE Hong Kong, stated that as of November, property prices in Hong Kong have risen by 2.8% and rents have also increased by 4.3% since the beginning of the year, in line with CBRE's predictions at the start of the year. He noted that after three consecutive years of decline, the residential market in Hong Kong has hit bottom and rebounded, showing that buyers have regained confidence and fundamentals are generally stronger. He expects that the growth in property prices in 2026 will be higher than in 2025, with an estimated growth of around 3% to 5%. He also mentioned that rents have reached a historical high and are expected to continue rising in 2026, although at a lower rate than property prices, with an estimated growth rate of around 2% to 3%. CBRE expects transaction volume in 2026 to increase by 10% compared to the previous year, reaching a total of 65,000 to 70,000 transactions. New home sales are expected to exceed 20,000 transactions, with an optimistic estimate of over 2,000 transactions per month on average. At the same time, the volume of second-hand sales is expected to exceed 45,000 transactions, with a monthly average of over 3,500 transactions. Regarding inventory, the bank expects inventory levels to start declining from the peak in 2025, although the rate of decrease will be slow. Since April 2025, developers have maintained a stable level of new home sales, with approximately 1,600 to 2,200 transactions per month. The bank also predicts that by the end of 2026, inventory levels will drop to below 20,000 units. Looking ahead, with inventory decreasing by thousands of units, developers may reduce discounts, which will support continued increases in property prices in Hong Kong.