Hong Kong's home prices rose for the 12th straight month in May 2026, marking their longest continuous increase since 2018. The private domestic home price index climbed 1.4% from April and was up about 12% year-on-year as of May [1, 2, 3, 4, 5].
This strong rebound follows Hong Kong's first annual price rise in four years in 2025. Mainland Chinese buyers, particularly affluent and highly educated immigrants attracted by low taxes and expanded visa options, have largely powered the recovery [2, 3, 4, 5].
Cyrus Fong, head of valuation and advisory for Greater China at Knight Frank, said, "The market was supported by the return of mainland buyers, improving sentiment and the gradual absorption of new supply. Mortgage rates remain low, alongside abundant market liquidity." He added, "We expect mass residential prices to rise 8 to 10 per cent this year" [4].
Knight Frank predicts up to 80,000 home transactions in 2026, the highest volume in more than a decade [2, 3, 4, 5]. Despite the positive momentum, recent regulatory crackdowns in China targeting illegitimate cross-border money flows have led banks to scrutinize mainland Chinese clients more closely. This tightening may limit buyers’ ability to make deposits [2, 3, 4, 5].
Eddie Kwok, executive director at CBRE Hong Kong, said, "These combined headwinds are expected to weigh on investment demand and market activity, potentially leading to a decline in transaction volumes in the coming months" [4]. A recent slump in Hong Kong stocks is also weighing on investment demand.
The home price index reflects only private residential properties, but these trends highlight the ongoing demand shifts and financial conditions shaping Hong Kong’s housing market.
The next key milestones will be the home price and transaction data for June 2026, which will indicate whether the market can sustain its momentum amid regulatory and economic challenges.
