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Hong Kong Property Recovery Gains Momentum as Residential Upturn Lifts Office and Retail Outlook

Hong Kong, 4 May 2026 – Hong Kong’s property market is showing stronger signs of recovery, with Morgan Stanley expecting the city’s residential upturn to help revive the office and retail sectors after several years of pressure from high interest rates, weak sentiment and falling asset values.

The investment bank has raised its 2026 forecast for Hong Kong home price growth to 12% from 10%, after residential prices rose 7.7% since the start of the year. Morgan Stanley also expects home prices to rise another 5% in 2027, suggesting the current rebound may have further room to run if liquidity, capital flows and buyer confidence continue to improve.

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Author

  • Rebecca Hsu is a Senior Economist and Lead Analyst for The Ledger Asia, focusing on the rapidly evolving financial landscapes of East and Southeast Asia. With a background in sovereign risk assessment and emerging market trends, Rebecca provides sharp commentary on trade dynamics, monetary policy, and the digital economy's impact on regional growth.

    Formerly a strategic advisor for major financial institutions in Hong Kong, she excels at translating complex macroeconomic shifts into actionable insights for investors and policymakers. Her work at The Ledger Asia centers on China’s economic transition and the burgeoning manufacturing hubs of ASEAN, ensuring readers stay ahead of Asia’s shifting financial tides.

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