Hong Kong home prices snap 3-year downturn as rents surge to a new high
The property market has turned a corner, buoyed by rate cuts, stock gains and talent schemes, analysts say
Rents climbed to a record high in December, boosting annual gains to 4.26 per cent in 2025 and marking a third consecutive year of increase, according to the Rating and Valuation Department on Wednesday.
“Hong Kong’s residential market strengthened notably since mid-last year, supported by macro-level interest rate cuts, sustained gains in the Hong Kong stock market that boosted the wealth effect, and demand from talent schemes and non-local students,” said Alvin Leung, senior director of valuation and advisory services at Colliers.
“Attractive rental yields and the full removal of property cooling measures in the 2024 policy address further fuelled strong market sentiment.”
Second-hand home prices inched up 0.23 per cent in December, the seventh straight month of gains, the data showed. The last annual increase was in 2021, when lived-in home prices rose 3.45 per cent.
The turnaround has set the tone for a broader rebound this year, with Ricacorp Properties predicting an annual growth of 6 per cent to 8 per cent.