JLL: Hong Kong property market steadily recovering, new property prices no longer restrained. New developments in major areas this year are priced 15% higher than in the past 4 years.

On May 11th, Jones Lang LaSalle (JLL) released its "Overview of the Hong Kong Residential Sales Market", indicating that the property market is steadily recovering. Developers are no longer focused on selling at low prices to increase volume, and the price increase of newly released units is no longer restrained. The average price per square foot of the first batch of units in the main areas released this year has rebounded by about 15% from the low point of the past 4 years. Data from the Project Strategy and Advisory Department of Jones Lang LaSalle (JLL) shows that many new projects in 2025 will only have slight price increases of 2 to 5% based on the quality of the units, or they will be released at the original price. Developers are taking a more cautious approach. In 2026, the pricing strategy will become more aggressive, with individual units in popular projects and the first batch of units seeing price increases of up to 30%. Li Yuanfeng, Senior Director of the Project Strategy and Advisory Department at Jones Lang LaSalle (JLL), said, "Property prices hit bottom in March 2025, and then gradually rebounded due to interest rate cuts, mainland buyers returning to the Hong Kong property market, and improved market sentiment. Developers in the main areas have adjusted their pricing strategy according to market changes, with pricing being more aggressive in 2026. They are no longer focused on selling at low prices for volume, and prices for high-quality units in some popular projects are increasing by double-digit percentages, showing that developers are very confident in sales. However, with the possibility of interest rate hikes increasing, price increases for new projects in the second half of the year will be more moderate, and the trend will be stable and upward." For example, residential developments along the MTR railway lines, which are usually popular with buyers, are currently showing signs of price stability and slight recovery. The Grand Seasons in Tseung Kwan O's Lohas Park was launched in January last year with an average price per square foot of about 14,000 to 15,000 Hong Kong dollars. By the beginning of this year, a new batch of units in the same area, The Mount Pavilia I, saw an average price per square foot rise to about 15,500 to 16,000 Hong Kong dollars, an increase of over 10% in a short period of time. The Mount Pavilia III in Tai Wai was re-launched this year with an average price per square foot in the first batch of about 21,344 Hong Kong dollars. During the sales period, prices were increased multiple times, with some high-quality units priced at over 25,000 Hong Kong dollars per square foot. The re-launched average price per square foot has risen by about 6.7% from the first batch's average of 19,999 Hong Kong dollars in 2021. Although it has not yet fully recovered to the peak level of 2021, there has been a noticeable improvement from the market's low point. When the Blue Coast series above the Wong Chuk Hang MTR station was first launched in 2024, the average price per square foot was about 21,000 to 22,000 Hong Kong dollars. The latest price lists and transactions this year show that the price per square foot of high-quality units has stabilized at 25,000 to 30,000 Hong Kong dollars, with some four-bedroom units in high-rise buildings priced at over 30,000 Hong Kong dollars per square foot, an increase of about 19-36% from the initial pricing. Although prices have significantly improved from the low point of the past 4 years, they are still about 10 to 20% lower than the average price per square foot of the first batch of units in residential projects launched during the peak period of 2021, such as The Carmina in the same area with an average price per square foot of about 29,689 Hong Kong dollars. Chung Chuyu, Senior Director of the Research Department at Jones Lang LaSalle (JLL), pointed out, "The Kai Tak Development Area, which is most favored by mainland buyers, has seen the strongest rebound in new project prices. The first batch prices of residential projects in the area released in 2023 to 2024 were generally in the range of 16,000 to 20,000 Hong Kong dollars per square foot. The average price per square foot of high-quality units in new projects in the area this year has risen to over 23,000 Hong Kong dollars, showing a significant increase in developers' asking prices."