Citibank has raised its forecast for this year's property price increase in Hong Kong from 3% to 8%, and it is expected to accelerate next year.

Citibank released a report stating that due to Hong Kong's property price increase of over 4.7% in 2025, Citibank has raised its forecast for Hong Kong's property price increase in 2026 from 3% in October last year to 8%. Citibank predicts that in the midst of a multi-year upward cycle, Hong Kong's property prices will continue to accelerate in 2027. Key factors include the fact that new land supply is at its lowest level in 14 years and lower than sales volume; the available supply has decreased by 10,000 units in the past year; it is expected that from 2026 onwards, new property sales will see a net increase for the first time since 2019, with an estimated 21,000 new units sold, while the completion volume in the next 2-3 years will decrease, with an estimated 20,000 units in 2026. In addition, Citibank predicts that the number of non-local student visas approved in Hong Kong will increase by 10,000 per year in 2026, reaching 90,000, with an influx of talent reaching 160,000 people, compared to 180,000 in 2023/2024, which will drive the recovery of the Hong Kong rental market and future demand. Citibank predicts that the cumulative growth in property prices in Hong Kong from 2023 to 2025 will reach 20%, with a 6% increase in 2025 alone, and the gross rental yield will reach 3.5%; properties below 70 square meters will achieve breakeven. Influenced by the wealth effect of the capital market, the Hang Seng Index often leads property prices by about 3 months.