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Hong Kong Home Prices Post First Annual Gain Since 2021 After 3.3% Rise in 2025

Falling mortgage rates with shrinking inventories fueled a tentative turn in sentiment.

Overview

  • The official private-home price index rose about 3.25–3.3% in 2025, the first yearly increase since 2021 after a near-30% drop from the peak.
  • Prices edged up 0.2% in December, marking a seventh straight monthly gain after a revised 1.1% rise in November.
  • The Hong Kong Monetary Authority cut its base rate three times in 2025, and major banks lowered lending costs in line with U.S. easing.
  • Mainland investors spent a record HK$138 billion on homes last year, about one fifth of purchases, according to Midland Realty.
  • Forecasts for 2026 point to further gains, with CBRE expecting 3–5% and Morgan Stanley around 10%, dependent on the pace of rate cuts and broader market forces.