Hong Kong, 30 January 2026 – Hong Kong’s long-slumping housing market is showing clear signs of recovery, with renewed buyer interest and rising prices signalling a potential end to a prolonged downturn that has weighed on the city’s property sector in recent years.
After years of weakness tied to higher mortgage rates, cautious sentiment and demographic shifts, the private residential property market is staging a comeback. Government data show that home prices in Hong Kong posted their first annual increase in 2025 since 2021, rising about 3.3%, and continued moderate gains through the end of the year, extending a multi-month upward trend.
According to market observers and local agents, improved sentiment and a “renewed buzz” around the city have contributed to stronger traffic from buyers and renters alike, supported by a gradual recovery in economic activity and easing financing conditions. The rebound follows a roughly 30% drop in prices from their 2021 peak, one of the biggest corrections in the global residential property market, and reflects growing confidence after policy changes aimed at stimulating demand.
Lower mortgage rates, which have moved in step with U.S. Federal Reserve rate cuts, have helped improve affordability and encourage buying interest, while the removal of certain market-cooling measures and discounts offered by developers have contributed to turning the tide in favour of buyers. Analysts and industry watchers now see the combination of rising transactions, softening inventory and more active market participation as supportive signs that Hong Kong’s housing cycle may be shifting toward recovery after several years of stagnation.
