"Hong Kong Property" CBRE: Last year, Hong Kong property prices rose by 3.3%, in line with expectations. This year, it is estimated to continue rising by 3% to 5%

The Rating and Valuation Department announced the private residential property price index for December. According to Guo Wei'en, Executive Director of Valuation and Advisory Services at CBRE Hong Kong, residential property prices in Hong Kong are expected to rise by 3.3% for the entire year of 2025, in line with the bank's forecast. The bank believes that the Hong Kong residential market will continue to rise in 2026, with a more significant increase estimated at around 3% to 5%.

The rise in the Hong Kong stock market over the past year has created a wealth effect. The bank has observed more buyers actively entering the market, driving an increase in transaction volume, which has also led to a bottoming out of property prices.

In 2025, the price increase of smaller properties outperformed the market, recording a 4.1% increase. This is partly attributed to the government's policy of reducing the stamp duty on residential properties priced at HKD 4 million and below to HKD 100. This policy has stimulated residential transactions, especially for smaller properties.

Developers have been steadily absorbing new properties each month. Since April 2025, there have been over 1,600 primary transactions each month. This sends an important message to the market: the peak of primary inventory has passed, and the number of unsold units will gradually decrease.

Looking ahead, when the number of unsold units falls below 18,000, developers will be in a position to further reduce incentives, thereby contributing to the stability and gradual upward movement of property prices.

This month, a government residential land parcel was successfully awarded. A total of 7 developers participated in the bidding. This indicates that developers are optimistic about the future market and are actively increasing their reserves of residential land