Likagok: Hong Kong property prices are expected to rise by nearly 15% in 2026, with rents expected to increase by around 7%.

On March 27th, the latest data released by the Hong Kong Rating and Valuation Department showed that the private residential property price index for February 2026 was 307.6 points, a significant increase of 1.59% from January's 302.8 points, marking the largest monthly increase in five months, with property prices reaching a new high in nearly 22 months. Since June of last year, property prices have been rising for nine consecutive months, with a cumulative increase of 7.36% during this period. Chen Haichao, Director of Research at Ricacorp Properties, stated that property prices have been rising steadily by over 1% each month in February, a trend not seen since March 2023. This reflects the positive outlook of market participants and the increased demand pushing up prices. The sale of new properties in late January to early February, along with optimism from major banks about the stock and property markets, also fueled the rise in the secondary market. Looking ahead to March, Chen Haichao pointed out that despite the market's slowdown during the Lunar New Year in mid-February and the financial market fluctuations caused by the outbreak of conflict in the Middle East at the beginning of March, the impacts were temporary and limited. Buyers and investors remain eager to enter the market to avoid buying at even higher prices later. Therefore, it is expected that property prices in March will continue to rise by about 0.8%, with a projected cumulative increase of nearly 3.5% for the first quarter. If this trend continues for the remaining three quarters of the year, property prices are expected to rise by nearly 15% for the whole year. As for rental trends, the latest data from the Rating and Valuation Department showed that the rental index for February 2026 increased slightly by 0.05% to 200.8 points, marking the fourth consecutive month of reaching a historic high with a cumulative increase of 0.45% during this period. Despite being in the off-peak season, rents have not dropped but instead continued to rise, reflecting strong demand for rental properties. Chen Haichao predicted that rents will continue to rise slightly in March, with a projected increase of 0.2% for the first quarter. As we enter the second and third quarters, which are peak rental seasons, along with the fourth quarter, if rents continue to increase by an average of 2% to 3% each quarter, rental prices for the whole year are expected to rise by about 7%.