Kao Li: The housing prices in Hong Kong are expected to develop steadily, with a 5-10% increase expected for the whole year.

On April 28, the Hong Kong Rating and Valuation Department announced that the private residential price index for March 2026 was 312.8, representing a 1.4% increase from the previous month. When considering the overall performance of the private residential market in the first quarter of this year, there has been an accumulated increase of 4.4%, continuing the upward trend from the second half of last year. Cheung Po Man, Senior Deputy Director of the Hong Kong Rating and Valuation Services, stated that the Hong Kong property market has been driven by factors such as interest rate cuts, strong performance in the Hong Kong stock market leading to wealth effect, as well as demand from high-net-worth individuals and students studying abroad. These multiple factors have made rental returns attractive, triggering optimistic market sentiment and leading to strong transaction volumes in the first quarter of this year. The number of residential transactions registered in the first three months reached 18,654, an increase of nearly 53% compared to the same period last year, and even higher than the peak period in 2021. Despite uncertainties such as the US-Iran conflict causing rising oil prices and changes in interest rates this year, major banks have raised property valuations in response to the warming property market. With rental returns being driven by strong demand, strengthening the defensive power of property owners, it is expected that property prices will continue to stabilize and develop steadily in the future. Cheung Chun Fung, Senior Director of the Hong Kong Rating and Valuation Services, added that the performance of the property market in the first quarter of this year reflects clear policy effects. According to the latest data, trading in the primary market has been very active, with over 2,000 transactions recorded in April alone. In the first four months of 2026, the number of transactions in the primary residential market has exceeded 8,400. This has not only effectively eased inventory pressure but also significantly boosted the confidence of developers in promoting new projects and raising prices. It is expected that as the peak rental season approaches in the second and third quarters, property prices will continue to strengthen with the improving market sentiment and optimizing rental yields. Developers are expected to show more aggressive sales strategies in the upcoming quarters and later this year. With the primary market leading the overall atmosphere, it is anticipated that property prices will increase by 5-10% for the full year.