Knight Frank: Hong Kong residential market has emerged from the adjustment phase, expecting a further increase in property prices by about 5% in 2026.

Rosanna Tang, Executive Director and Head of Research Department of Knight Frank, stated that according to the latest data from the Rating and Valuation Department, the private residential property price index in Hong Kong reached 298.6 points in December last year, marking a continuous increase for seven months and hitting a new high in a year and a half, leading to a cumulative 3.3% increase in property prices for the whole year of 2025, ending the three-year trend of year-on-year declines. Rosanna Tang pointed out that the stabilization of property prices is mainly attributed to active market trading and a relaxing interest rate environment. With residential transaction volume maintaining at above 5,000 cases per month for ten consecutive months, coupled with further reduction in mortgage rates by banks lowering the cost of homeownership, the market sentiment has significantly improved. The company believes that the residential property market has emerged from the adjustment phase and started to recover, and anticipates a growth of around 5% in property prices in 2026.