Hong Kong Real Estate Market "Surges in Both Volume and Price" Mainland Buyers "Deserve Credit"

Securities Times Reporter Wu Jiaming

Entering 2026, Hong Kong’s property market continues to show signs of recovery, with the “rising volume and prices” largely driven by mainland Chinese buyers.

Cen Songqian, an analyst at Midland Realty, pointed out that, according to data from the Land Registry and based on known buyer names, in February 2026, mainland Chinese buyers (identified by their English Pinyin names) registered a total of 1,365 transactions in Hong Kong’s primary and secondary residential markets, amounting to approximately HKD 15.58 billion. The number of transactions increased by about 10.4% month-on-month, and the total amount rose by approximately 23.1%. Notably, the number of registrations by mainland buyers has exceeded 1,000 for 12 consecutive months, and the total transaction value has surpassed HKD 10 billion for nine consecutive months. Among these, the Kai Tak area became the “money magnet” for mainland buyers, with about HKD 2.43 billion, followed by Central and Western District and Tseung Kwan O, with HKD 1.75 billion and HKD 1.03 billion respectively.

A previous report from Midland Realty indicated that high-priced properties in Hong Kong, especially those above HKD 50 million, are particularly favored by mainland clients, accounting for nearly 70% of first-hand luxury homes in this price range, with a trend of “higher prices, higher proportions.” “Overall, mainland buyers purchasing property in Hong Kong tend to prefer new homes, value transportation infrastructure, and have relatively high price tolerance,” said a senior real estate agent in Sheung Shui, Hong Kong. “In terms of location, Kai Tak New Development Area, close to Hong Kong West Kowloon High-Speed Rail Station, is especially popular among mainland buyers, particularly for new projects in the area.”

Cen Songqian pointed out that Hong Kong, as a center for asset allocation and educational resources, continues to attract mainland professionals and high-net-worth individuals. Some industry insiders believe that the appreciation of the RMB has further enhanced the purchasing power of mainland buyers. Their influence on Hong Kong’s new housing market is expected to grow. Additionally, management at New World Development recently mentioned in their earnings call that many prospective buyers are shifting profits from the stock market into real estate, creating a positive interaction between the capital and property markets.

Since the beginning of this year, Hong Kong’s property market has shown impressive data. The latest figures from the Hong Kong SAR Government Land Registry indicate that property transaction registrations have increased over the past two months, with 7,924 transactions in February, the second-highest level in the past 22 months. Meanwhile, the latest data from the Rating and Valuation Department shows that in January, Hong Kong’s private residential price index hit a 19-month high, and rental indices also reached new highs, with property prices and rents rising simultaneously.

A recent report from JPMorgan Chase stated that since March 2025, Hong Kong residential prices have rebounded by over 4%, and are expected to rebound by about 5% by the end of 2026. Factors supporting this continued recovery include the wealth effect from resilient stock market performance, the release of pent-up demand, expected interest rate cuts, rising rents, steady interest from mainland buyers, and the recovery of the financial industry. Public information shows that Morgan Stanley noted that, driven by a strengthening RMB exchange rate, attractive rental yields, and rising property prices, the number of mainland buyers purchasing Hong Kong properties has surged. The upcoming new projects are expected to maintain high absorption rates, with average prices possibly seeing slight increases.