Hong Kong’s residential property market appears to have bottomed out, with sales momentum and developer sentiment finally pointing to a recovery, according to new data and industry forecasts reported by multiple media outlets.
The city’s Land Registry recorded 5,291 home sales in August – the sixth consecutive month above the 5,000 threshold – marking a 45 percent year-on-year rise, despite an 8.2 percent dip compared with July. In the first eight months of 2025, residential sales climbed 10 percent from a year earlier to 42,379, the highest level for the period in four years.
Analysts said multiple factors were lifting sentiment, including strong stock market performance, rising rents pushing households to buy, and reduced stamp duties for homes priced up to HK$4 million (US$512,500).
Midland Realty analyst Benny Sham told the South China Morning Post that expectations of interest rate cuts by the US Federal Reserve were also supporting the positive outlook, as the move could see local banks ease mortgage costs.
[See more: Mainland Chinese are behind a surge in Hong Kong’s ultra-luxury property market]
Market watchers expected transaction volumes and values to keep climbing. Midland Holdings chairman Wong Kin-yip forecast residential transactions would grow 13 percent this year to 64,000, with deal values rising 5 percent to HK$475 billion.
Meanwhile, Ricacorp Properties’ Derek Chan predicted sales could grow by 9 percent year-on-year in September, to surpass 7,000, if interest rate cuts and supportive measures materialised.
Developers were also expressing cautious optimism, with Henderson Land Development’s chief financial officer Andrew Fung Hau-chung telling Bloomberg Television that immigration inflows should help sustain housing demand. He also voiced hope that Hong Kong’s upcoming Policy Address would bring further supportive measures, such as tax cuts for buyers of small flats.
